NZD/USD Price Analysis: Bears in control, testing below key structure

NZD/USD showing signs it is on the verge of a strong downside impulse.
Bears have broken strong support, but will it now act as resistance or is there more downside to go?

Ross J Burland FXStreet

Until the overhead resistance is broken, NZD/USD is a fade on rallies as bears target the completion of a reverse Head & Shoulders pattern on the longer-term charts.

The pair has just been rejected, again, at the monthly resistance and it has dropped and broken expected daily support.

The question now is whether there is more to go to the side or whether the price will offer a discount on a pullback in the coming sessions from there current lows.

The following is a top-down analysis from the monthly, weekly and daily support.

Monthly Head & Shoulders?

1W chart

We have a series or tops on the weekly chart, confirming the downside bias.

1D chart

More to go?

The bears could well head lower which would then make for a more compelling retest of support on a correction to the 38.2%.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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