The NZD/USD pair has recently experienced a significant decline, forming a downward channel with lower lows, reaching 0.56763, its lowest level since November 26, 2025.
However, during this week, the New Zealand dollar rebounded against the US dollar, recording a new high and breaking above the descending channel, signaling a potential shift from a bearish to a bullish trend.
The price may see a corrective pullback toward 0.57157 before resuming the upward movement, provided bullish momentum remains intact. On the other hand, if the price drops below 0.56763 and forms a lower low on the four-hour timeframe, this would invalidate the bullish scenario and indicate a return to the downtrend.