The NZDUSD is one of the biggest movers in trading today, with dollar strength and NZD weakness keeping the sellers in control.
Since the August 21 high at 0.5985, the pair has trended lower, reaching 0.5579 last Monday. That low came within four pips of the November 2025 low at 0.5575.
Since then, the price has waffled up and down, with a corrective high at 0.56256. That puts the recent trading range at less than 50 pips. After a sustained decline, that consolidation tells us the selling has paused. It does not, by itself, signal that the trend has reversed.
Sellers are back near the floor
Today’s decline has taken the price to around 0.5584—just five pips above last Monday’s low.
For traders, the support area at 0.5575–0.5579 is the next key test. Buyers can lean against that area with risk defined below it. Sellers want to see a break below, followed by the ability to stay below, to open the door for further downside momentum.
The next downside targets would include:
0.55388: The 2024 low.
0.5486: The April 8 low.
0.5400: Near the 2020 low.
A break is one thing. Staying below is another. If sellers push through support but the price quickly snaps back above it, the sellers will have had their shot—and missed.
What would give buyers some breathing room?
On a rebound, the first resistance comes near 0.5605, followed by last week’s high area near 0.5626–0.5627.
A move above that ceiling would give buyers a short-term victory and put the falling 100-hour moving average near 0.5644 in play. Getting above—and staying above—that moving average would be another step toward improving the technical picture.
For now, the sellers remain in control. The buyers need to defend the floor and then reclaim resistance. Until they do, a bounce is still a correction within the broader downtrend.
In the video above, I take a look at the NZDUSD’s decline, the support being tested, and the levels that would give buyers more control.
This article was written by Greg Michalowski at investinglive.com.
