NZD/USD Approaches Key Supply ZoneThe NZD/USD is currently approaching a notable supply zone on the daily chart, indicating a potential area where selling pressure may intensify. According to the Commitment of Traders (COT) report, there has been a slight increase in short positions among Non-Commercial traders, suggesting that large speculators are beginning to bet on a decline. Conversely, retail traders are predominantly going long, which often acts as a contrarian indicator, hinting at possible exhaustion or a forthcoming reversal.
This confluence of signals points toward the possibility of an additional bearish impulse in the near term. Our forecast aligns with this view, as the DXY (US Dollar Index) shows signs of potential strength and could surge higher, further pressuring the NZD/USD pair. Moreover, seasonal analysis indicates a historically bearish trend during this period, adding another layer of confirmation to the outlook.
What are your thoughts on these developments? Do you see the potential for a downside move reinforcing, or are there other factors to consider?
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