NZD/USD is trading near a 3-month low

Today, the hourly chart of the NZD/USD currency pair shows a sharp downward movement that began after the breakdown of the 0.5710 level, which led to a decline in quotations to a 3-month low of 0.5520. The decline was accompanied by a strong downward momentum, which is confirmed by the deep red histogram of the MACD indicator. After reaching the low, the price began to show signs of stabilization and formed a consolidation zone near the 0.5590 level. There is an attempt to form a short-term correction, confirmed by the narrowing of the MACD histogram and its movement towards zero. However, the price is still trading well below the MA (200) H1 moving average line (0.5800), which indicates that the downtrend will continue in the medium term. The 0.5600 level is the nearest resistance, the breakdown of which may strengthen the corrective movement in the direction of 0.5710. Support remains at 0.5520, its breakdown will open the way to new lows. As long as the price remains below 0.5710, the priority remains for sales, despite the current pullback phase.

Resistances are at the marks: 0.5600, 0.5710, 0.5800

An alternative scenario: 0.5520, 0.5500, 0.5400

The main scenario of the pair's movement implies a breakout of the session low of 0.5520 and there may be a decline to the psychological level of 0.5500

An alternative scenario suggests a breakout of the session high of 1.5600 and there may be an increase to MA (200) H1 (0.5800)