NZDUSD at Key Resistance Level - Will It Drop To 0.56990?

NZDUSD has reached a significant resistance zone, marked by historical price rejections and strong selling pressure. This area has previously acted as a key supply zone, increasing the probability of a bearish reaction if sellers regain control.

The current market structure suggests that if price confirms a rejection from this resistance zone, we could see a potential drop toward the 0.56990 level. However, a break and close above this resistance zone would invalidate the bearish bias and could signal further upside continuation.

Traders should look for bearish confirmation signals such as rejection wicks, bearish engulfing patterns, or increased selling volume before considering short positions.

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