The New Zealand dollar against the US dollar NZD/USD currency pair continues to move within the framework of the decline and completion of the formation of the “Head and Shoulders” reversal pattern. Moving averages indicate a short-term bearish trend for the pair. Prices have broken through the area between the signal lines downwards, indicating pressure from sellers of the currency pair and a potential continuation of the decline in the value of the instrument from current levels. At the time of publication of the Forex forecast, the New Zealand dollar to US dollar exchange rate is 0.5954. At the moment, we should expect an attempt at a bullish correction of quotes and a test of the resistance level near the 0.5965 area. Further, as part of the forecast and Forex analysis for tomorrow, we expect a downward rebound in prices and an attempt to develop a decline in the currency pair to an area below the 0.5695 level.
NZD/USD Forecast and Analysis for July 31, 2025
An additional signal in favor of a decline in the NZD/USD currency pair on Forex will be a test of the resistance line on the relative strength index (RSI). The second signal in favor of this scenario will be a rebound from the lower border of the bullish channel. A strong price increase and a breakout of the 0.6055 level will cancel the option of a decline in the New Zealand dollar against the US dollar on Forex. This will indicate a breakout of the resistance area and the upper border of the bearish channel. In this case, the pair will continue to grow to an area above the 0.6185 level. Confirmation of the decline in the NZD/USD currency pair should be expected with a breakout of the support area and the closing of quotes below the level of 0.5865, which will indicate a breakout of the lower border of the “Head and Shoulders” reversal pattern and the beginning of the pattern’s implementation with targets below.
NZD/USD Forecast and Analysis for July 31, 2025 suggests an attempt to test the resistance area near the 0.5965 level. From there, we can expect quotes to continue falling to an area below the 0.5695 level. An additional signal in favor of a decline will be a rebound from the resistance line on the relative strength indicator. A strong price increase and a breakout of the 0.6055 level will cancel the decline of the NZD/USD pair. In this case, we should expect the pair to continue rising with a potential target above the 0.6185 level.
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