NZD/USD tests key support at 0.5723-31 after hitting 4-week high

NZD/USD reached a 4-week high of 0.5751 earlier today, marking its strongest level since October 30, before retreating to test crucial support between 0.5723-0.5731 during the US session. The pair's rally was initially supported by buyers defending this key swing area during Asian trading, which provided a solid foundation for the upward move. However, momentum has shifted as the pair rotated lower, bringing it back to this critical decision zone. The 0.5723-0.5731 range now acts as a pivotal technical level where traders must decide whether to defend the support or allow further downside. A successful hold above this area could reinforce bullish sentiment and potentially trigger another attempt at recent highs. Conversely, a break below would signal weakness and could accelerate losses toward 0.5700. Traders should closely monitor price action at these levels for directional cues in the coming sessions.