NZD/USD Intraday Signal: Downside Toward 0.5850
Analysis:
NZD/USD continues to trade within a bearish structure on the 4-hour timeframe after confirming a Change of Character (ChoCH) and breaking below the key 0.6000 support zone. The failure to sustain bullish momentum near the previous supply area indicates that sellers remain dominant in the current market structure.
The recent drop created a weak low near 0.5850, suggesting liquidity remains below current price levels. The current bounce appears to be a short-term retracement rather than a full trend reversal. As long as the pair remains below the 0.6000 resistance zone, the downside scenario toward lower liquidity remains the most probable path.
A continuation of selling pressure could push price toward 0.5880 and eventually 0.5850, where the next demand zone is located.
Trade Setup:
Enter: Sell below 0.5950
Stop-Loss (SL): 0.6005
Target A: 0.5880
Target B: 0.5850