The NZD/USD pair fell to the support level of 0.5744 as a result of a technical correction influenced by the fixation of purchases by major players, as well as after the publication of macroeconomic statistics in the US. Investors are assessing the developments in Venezuela, where political tensions remain high amid the standoff between the current government and the opposition.

The possibility of growth remains.

On the daily chart, an upward wave C is developing, which includes the completion of the first wave of a lower level 1 of (1) of C and a correction as the second wave 2 of (1) of C. On the four-hour time interval, the construction of the third wave 3 of (1) of C has begun, wave (i) of i of 3 and the correction as wave (ii) of i of 3 have ended, and the development of wave iii of 3 is also observed. If the assumption is correct, the upward trend of the NZD/USD pair will continue to the area of 0.6000–0.6125, and the critical stop-loss level for this scenario appears to be 0.5735.

During the Asian session, the NZD/USD pair is correcting in the area of 0.5757 amid local downward dynamics of the New Zealand currency and the absence of key statistics during the Christmas and New Year holidays, so the attention of market participants is focused on the rhetoric of official authorities.

On the four-hour chart, a Bearish Flag pattern is forming, with the downside breakout occurring at the 0.5810 level and a potential target at 0.5749 and below. Within the 0.5836–0.5793 range, a Three Black Crows candlestick pattern can be observed, confirming strong selling pressure and, in this context, signaling a potential acceleration of the “bearish” momentum in the asset. 

During the Asian session, the New Zealand dollar is showing a slight downward trend, consolidating around 0.5800. Market activity remains low as traders prepare for the New Year celebrations and are currently taking profits on open positions. 

The NZD/USD pair has been rising since the middle of last month, correcting to the medium-term downtrend, and is currently close to the 0.5859 mark (Murrey level [8/8]).