FX.co ★ NZD/USD

On Friday, the New Zealand Dollar confidently corrected to the downside with a strong impulse, forming a complete bearish candle from the resistance level located at 0.58726 according to my analysis. Given the current scenario, I fully consider the possibility of further downward movement next week. In this case, I am planning to focus on holding the support level at 0.57852 and the support level at 0.57732. Near these support levels, two scenarios may unfold. The first scenario involves the price consolidating below these levels and continuing downward. If this plan plays out, I will anticipate the price moving towards the support level at 0.57112 or the support level at 0.56916. Should the price firmly establish below these support levels, I will expect further southward movement towards the support level at 0.5588. Around this support level, I will await the formation of a trading setup to determine the next trading direction. Of course, I acknowledge that during the price movement towards the designated southern target, there may be northern pullbacks that I plan to use to search for bearish signals from nearby resistance levels in anticipation of the price resuming its downward movement within the framework of forming a global southern trend. An alternative scenario for price movement when testing the support level at 0.57852 or the support level at 0.57732 would involve a plan with the formation of a reversal candle and a recovery in price. If this plan unfolds, I will expect the price to return to the resistance level at 0.58726. Near this resistance level, I will continue to search for southern signals in anticipation of the price resuming its downward movement. In short, next week I consider the possibility that the price may be pushed towards the nearest support level, and then market conditions will be assessed.