NZD/USD Facing Key Breakdown as Antipodean Currencies Weaken

The New Zealand Dollar (NZD) to US Dollar (USD) is experiencing a sharp decline despite an initially positive reaction to better-than-expected GDP data from New Zealand. The initial bullish momentum faded quickly, as weaker-than-expected Australian job data dragged down both NZD and AUD, reinforcing the overall bearish sentiment in Antipodean currencies.

Technically, NZD/USD is breaking through two critical support levels today. The first is the blue horizontal support around 0.574, a level that previously acted as a strong floor for the pair. The second is the black uptrend line, which has provided a long-term bullish structure for NZD/USD.

If the price closes below both of these supports, it would confirm a strong sell signal, suggesting further downside movement in the short-to-midterm. The next major target for sellers would likely be the previous lows, potentially extending towards 0.566 or lower.

On the other hand, if buyers step in and NZD/USD forms a hammer candlestick, indicating rejection of the breakdown, it could signal a potential reversal or short-term bounce, providing an opportunity for bulls to regain control.

All eyes are on the daily close—a break below support would accelerate selling pressure, while a bullish reversal could open the door for a recovery attempt.

Source: https://www.axiory.com/analytics/technical-analysis/nzd-usd-facing-key-breakdown-as-antipodean-currenc