FX.co ★ Technical analysis on NZDUSD for May 24th, 2023.

Black line- resistance

Green line- support trend line

Yellow rectangles- rejections

Following the last rejection at 0.6370 we warned traders that NZDUSD was vulnerable to a move towards the green support trend line around 0.61-0.6130. Today price has reached this support area and is challenging the green support trend line. A break below the green support trend line would be a bearish signal. The break below support will open the way for a move lower towards 0.60-0.59. Resistance at 0.6370 remains key. Bulls need to recapture this level in order to regain control of the short-term trend. Price has started making lower lows and lower highs. The most probable scenario is for price to break below support and move lower towards 0.60.