The 4-hour chart for NZD/USD shows that the pair has broken below the 0.5870 support and continues to trade to the downside. However, the pair is now extremely oversold at current levels, which may trigger a rebound toward the 0.5870 region.
As long as the price remains below the 0.5970 level, the short-term direction is likely to stay bearish. However, the broader pattern shows a bullish structure, with strong support established between the 0.55 and 0.56 region.
Therefore, this correction in NZD/USD could lead to a rebound toward the 0.6140 level once the downward phase completes.
