Hi, dear traders!
First, let us have a look at the performance of NZD/USD on the weekly chart.
Weekly
According to the weekly chart, the New Zealand dollar is under significant bearish pressure, which began after the emergence of the bearish Harami candlestick. This candlestick is highlighted on the chart. The pair reached 0.7030 and bounced downwards, as NZD bulls unsuccessfully tried to regain the initiative. As a result, the Harami candlestick was followed by a bearish candlestick with a sizeable real body and upper shadow. Furthermore, the pair closed below the 50-day EMA, which pushed the pair down earlier, as well as the blue Kijun-Sen line, the black 89-day EMA, and the orange 200-day EMA. Over the next two weeks, NZD/USD has been sliding down, and its momentum has only increased this week. The pair has begun to test the key support at 0.6524, and it could fall even further. At the time of writing, the pair was trading below 0.6524.
Daily
According to the daily chart, a Gravestone Doji bearish pattern has formed below 0.7028. Afterwards, the pair moved downwards with occasional upward corrections. NZD/USD has also dropped strongly below the Ichimoku cloud, as indicated by the highlighted candlestick. Bearish traders are now trying to break through the support at 0.6524, facing significant efforts by bulls, as indicated by the lower shadow. However, the situation could still change during today's session. If a bullish reversal candlestick emerges and the pair closes above 0.6524, it could likely signal an imminent correction. This would allow traders to carefully consider opening long positions with targets in the 0.6600-0.6635 area. Bearish reversal patterns would signal to open short positions. However, as the pair continues to push against the support level of 0.6524, going short below this level is not particularly desirable. Traders are recommended to wait for a rebound to open short positions at more attractive prices.
Good luck!