NZDUSD Analysis Today 16/7/2025

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What’s going on with the Kiwi? The NZD/USD pair has seen some dramatic price action, and today we’re breaking down what happened and where it might be headed next.

The big story for the New Zealand dollar against the US dollar is overwhelmingly bearish. It appears a key catalyst was the recent US inflation data, which injected significant strength into the greenback across the board. This caused a major sell-off in the Kiwi.

Looking at the charts, the price action tells a clear story. The level around 0.60 proved to be a critical resistance zone. Many traders were watching this psychological handle as a key area to initiate short positions. As the price climbed towards this level, sellers stepped in with force, and the pair was rejected hard.

This rejection triggered a steep decline, with the price slicing through several support levels in a very short amount of time. The pair is now consolidating its losses, hovering in the mid 0.59 range. The primary focus for sellers has now shifted to lower targets. The first key support level to watch is around 0.5935. If bearish pressure continues and that level breaks, the next major area of interest could be the 0.5900 handle.

Now, while the bearish sentiment is strong, there is a contrarian perspective to consider. After such a sharp and rapid drop, some technical indicators are suggesting that the selling momentum might be overextended. A few traders are looking for a potential bounce, identifying the area around 0.5950 as a possible entry for a high-risk buy, betting on a short-term relief rally.

So, to summarize the key takeaways: The dominant market sentiment for NZD/USD is strongly bearish. The 0.60 level acted as a powerful wall of resistance and a major sell-off point. The price is now testing lower supports, with a key focus on the 0.5935 area. While the downtrend is firmly in place, be mindful of a potential short-term bounce from these exhausted levels.

As always in these volatile markets, trade smart and manage your risk carefully.

#NZDUSD #trading