NZD/USD Price Analysis: Bears could move in for the kill at any moment according to H4 structure

NZD/USD bulls tests bear commitments at 4-hour resistance at 0.6627.
Bears look for a break of daily support at 0.6589 to engage fully from there.

As per the prior analysis, NZD/USD struggles in the face of a stronger US dollar despite hot RBNZ inflation expectations, there are bearish developments to take note of.

it was stated in the prior analysis, that ''the Doji candle, if followed by a bearish close on Friday, could set the case for a downside continuation for next week's business,'' as follows:

NZD/USD live market

The price action since the prior analysis has started to play out. The Doji was followed by a relatively strong bearish candle and today's, while yet to close, is also bearish.

The outcome of today's close could leave a Three Black Crows bearish candlestick formation on the daily chart. However, the candles should ideally be relatively long-bodied bearish candlesticks that close at or near the low price for the period. Nevertheless, the focus is on the downside from a longer-term perspective as illustrated in the following weekly chart:

NZD/USD H4 structure and scenarios

From a bullish perspective, the price could easily find support at the daily support structure. If the current tests at 4-hour resistance at 0.6627 fail but support remains firm, we will have a trapped scenario.

This could easily lead to a break of resistance and bullish market structure, leaving the focus back on the upside again for a deeper correction of the weekly chart's bearish impulse.

On the other hand, bears will be encouraged by a break of daily support at 0.6589 and might engage fully from there on the restest of the structure. This would be expected to act as a firm resistance and ultimately lead to a downside continuation of the weekly chart's bear trend.

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