The NZD/USD pair is correcting against a local strengthening of the American dollar, trading near the 0.5541 level, while the New Zealand currency is under pressure from macroeconomic statistics.

The NZD/USD pair is trading within a long-term downward trend, forming a corresponding channel: at the beginning of the month, the price tested its lower border around 0.5530, but failed to break lower. This week, the price showed mixed dynamics: first, it attempted to grow and tested the level of 0.5615, but then lost all gains.

The price could decline.

On the daily chart, the downward third wave of the higher level (C) of B and the fifth wave 5 of (C) are forming. Now, the third wave of the lower level iii of 5 and the fifth wave (v) of iii are developing. If the assumption is correct, the NZD/USD pair will decline towards the 0.5400–0.5200 area. The critical stop loss level for this scenario is 0.5709.