NZD/USD Price Analysis: Bears wait for confirmation of the downside
|- NZD/USD bears are staying in control all the while below monthly resistance.
- The price remains, however, in a short term bullish environment.
NZD/USD has been in rising across a short-term trendline support in an otherwise bearish longer-term environment.
Bears are patiently waiting for a price deterioration on a restest of near term strcuure.
The following is a top-down analysis of the pair illustrating where a bearish opportunity could arise.
Monthly chart
The monthly chart is displaying the prospect of a reverse head and shoulders which offers a bearish bias while the price is below the monthly resistance.
Weekly chart
The weekly chart's correction is significant enough to expect an extension of the broader bearish trend to move towards completion of the reverse head and shoulders.
Daily chart
Bulls are keeping the price elevated against critical trendline support.
4-hour chart
The price is headed towards a key resistance structure within a resistance structure and testing the 21-moving average.
So long as the price holds below the structure, there is a higher probability that the bears will aim to capitalise on a break of the rising support line.
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