NZDUSD Kiwi Flashback: April Reversal Continues To Support Recovery

Back on April 15, we discussed the potential for a major reversal on NZDUSD after price completed an ending diagonal near the 0.5681 area. Since then, the Kiwi has reacted exactly as anticipated, turning sharply higher and developing a strong impulsive recovery on the 4H chart. CHECK IT HERE

The rally from the April low appears clean and directional, which supports the view that the bearish sequence has likely ended, at least temporarily. The current structure suggests the pair is now trading within a higher degree A-B-C corrective recovery, with the ongoing advance likely unfolding as wave D of a broader triangle formation.

After the recent projected wave B pullback, we can now see on the way higher within wave C of D.

This type of price action typically allows for additional upside before the larger consolidation is complete. As long as the impulsive structure from the lows remains intact, NZDUSD may continue pushing toward the upper boundary of the triangle, with the 0.6010 region standing out as the next important resistance zone.

That area could attract sellers again and potentially cap the recovery within the broader corrective pattern, which may cause another wave E slowdown. For now, however, the near-term outlook remains constructive while the market continues to build higher highs and higher lows on the 4H timeframe.

For a detailed view and more analysis like this, you may want to join our live webinar today on Monday, May 11 @ 15.00CET: DIRECT LINK.