NZD/USD is holding near the 0.5660 level after a steady multi-week decline, reflecting persistent bearish sentiment.
On the daily chart, price remains below both the 50-day and 200-day SMAs, signaling sustained downside momentum. The current structure shows a clear pattern of lower highs and lower lows, a textbook bearish trend continuation setup.
Price is now approaching the key support zone around 0.5550, a level that has historically produced reactions. A clean breakdown beneath this area could open the door toward the 0.5490 liquidity pocket, where buyers previously stepped in during prior major selloffs.
Zooming out to the weekly timeframe, the pair remains locked inside a broad descending channel, guided by a long-term downtrend line stretching back to the early 2021 highs. Until price reclaims and holds above 0.5820–0.5880, any recovery attempts are likely to be corrective rather than a true trend reversal.
Key Levels I’m Watching:
Support Zones: 0.5660, 0.5550, 0.5490
Resistance Zones: 0.5820, 0.5880, 0.6060, 0.6365 (major long-term ceiling)
My Takeaway:
Bias stays bearish while price remains below 0.5820. A break under 0.5550 could accelerate downside momentum, while any rallies into 0.5820–0.5880 are likely to face selling pressure unless supported by a strong macro catalyst.