NZDUSD Technical Analysis – 17th DEC, 2025 – LONDON SESSION
NZDUSD – NZD weakness is being driven by softer commodity demand and cautious Reserve Bank of New Zealand (RBNZ)
NZDUSD – Technical Analysis (17 Dec 2025)
Price Action Overview:
On December 17th, NZDUSD fell to a low of 0.5767, marking a significant bearish move after failing to sustain momentum above the 0.5800 resistance zone earlier in the week. The daily candlestick showed a strong bearish body with limited upper shadows, reflecting decisive selling pressure and rejection of higher levels. This decline highlights the vulnerability of NZDUSD near critical support zones.
Momentum Indicators
• Relative Strength Index (RSI): Dropped to around 36, signalling bearish momentum and approaching oversold territory.
• MACD: Lines crossed downward, with the histogram expanding negatively, confirming accelerating bearish bias.
• Stochastic Oscillator: Fell below 25, reinforcing oversold conditions and hinting at potential short-term rebound attempts.
Moving Averages
• 20-day EMA: Turned downward, reflecting short-term bearish momentum.
• 50-day SMA: Positioned near 0.5820, now acting as overhead resistance.
• The alignment of shorter-term averages below longer-term ones confirms corrective pressure within the broader structure.
Volatility & Volume
• Bollinger Bands: Widened during the decline, indicating heightened volatility.
• Volume: Spiked as the pair touched 0.5767, validating strong selling interest and suggesting active participation from bears.
Support & Resistance Levels
• Immediate Support: 0.5760. A breakdown below this level could expose 0.5720 and deeper toward 0.5680.
• Immediate Resistance: 0.5820. A rebound above this level would ease bearish pressure and open the path toward 0.5860.
Multi-Timeframe Analysis
• Daily Chart: Shows a strong bearish candle, confirming downside momentum.
• Weekly Chart: Indicates reversal from recent highs, with price compressing into a corrective phase.
• Monthly Chart: Still reflects a broader downtrend, with NZDUSD struggling to establish sustained bullish momentum.
Fundamental Overlay
NZD weakness is being driven by softer commodity demand and cautious Reserve Bank of New Zealand (RBNZ) policy stance. Meanwhile, USD strength is supported by safe-haven flows and expectations of stable US yields. This fundamental backdrop aligns with the technical bearish bias.
Future Trend Outlook
• Bearish Scenario: A decisive break below 0.5760 would confirm continuation of the downtrend, targeting 0.5720 and 0.5680 in the short term.
• Bullish Scenario: If buyers defend 0.5760 and push above 0.5820, a rebound toward 0.5860 could unfold.
• Neutral Scenario: Consolidation between 0.5760–0.5820 until new macroeconomic catalysts provide direction.
Expert View
NZDUSD’s drop to 0.5767 underscores bearish dominance but also highlights the importance of support near 0.5760. The pair is oversold on multiple indicators, raising the possibility of a short-term rebound. However, unless price reclaims 0.5820, the broader bias remains bearish. Traders should closely monitor commodity market trends and RBNZ commentary, as these will likely dictate the next breakout direction.
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Disclaimer: This analysis represents my own opinion only. It is not to be construed as an opinion, offer, solicitation, recommendation, or financial advice of the Companies operating under the FXOpen brand.
For in-depth analysis, please check ...
NZDUSD – NZD weakness is being driven by softer commodity demand and cautious Reserve Bank of New Zealand (RBNZ)
NZDUSD – Technical Analysis (17 Dec 2025)
Price Action Overview:
On December 17th, NZDUSD fell to a low of 0.5767, marking a significant bearish move after failing to sustain momentum above the 0.5800 resistance zone earlier in the week. The daily candlestick showed a strong bearish body with limited upper shadows, reflecting decisive selling pressure and rejection of higher levels. This decline highlights the vulnerability of NZDUSD near critical support zones.
Momentum Indicators
• Relative Strength Index (RSI): Dropped to around 36, signalling bearish momentum and approaching oversold territory.
• MACD: Lines crossed downward, with the histogram expanding negatively, confirming accelerating bearish bias.
• Stochastic Oscillator: Fell below 25, reinforcing oversold conditions and hinting at potential short-term rebound attempts.
Moving Averages
• 20-day EMA: Turned downward, reflecting short-term bearish momentum.
• 50-day SMA: Positioned near 0.5820, now acting as overhead resistance.
• The alignment of shorter-term averages below longer-term ones confirms corrective pressure within the broader structure.
Volatility & Volume
• Bollinger Bands: Widened during the decline, indicating heightened volatility.
• Volume: Spiked as the pair touched 0.5767, validating strong selling interest and suggesting active participation from bears.
Support & Resistance Levels
• Immediate Support: 0.5760. A breakdown below this level could expose 0.5720 and deeper toward 0.5680.
• Immediate Resistance: 0.5820. A rebound above this level would ease bearish pressure and open the path toward 0.5860.
Multi-Timeframe Analysis
• Daily Chart: Shows a strong bearish candle, confirming downside momentum.
• Weekly Chart: Indicates reversal from recent highs, with price compressing into a corrective phase.
• Monthly Chart: Still reflects a broader downtrend, with NZDUSD struggling to establish sustained bullish momentum.
Fundamental Overlay
NZD weakness is being driven by softer commodity demand and cautious Reserve Bank of New Zealand (RBNZ) policy stance. Meanwhile, USD strength is supported by safe-haven flows and expectations of stable US yields. This fundamental backdrop aligns with the technical bearish bias.
Future Trend Outlook
• Bearish Scenario: A decisive break below 0.5760 would confirm continuation of the downtrend, targeting 0.5720 and 0.5680 in the short term.
• Bullish Scenario: If buyers defend 0.5760 and push above 0.5820, a rebound toward 0.5860 could unfold.
• Neutral Scenario: Consolidation between 0.5760–0.5820 until new macroeconomic catalysts provide direction.
Expert View
NZDUSD’s drop to 0.5767 underscores bearish dominance but also highlights the importance of support near 0.5760. The pair is oversold on multiple indicators, raising the possibility of a short-term rebound. However, unless price reclaims 0.5820, the broader bias remains bearish. Traders should closely monitor commodity market trends and RBNZ commentary, as these will likely dictate the next breakout direction.
#fxopen #forex #forexanalysis
Disclaimer: This analysis represents my own opinion only. It is not to be construed as an opinion, offer, solicitation, recommendation, or financial advice of the Companies operating under the FXOpen brand.
For in-depth analysis, please check ...