NZD/USD Price Analysis: Bears seeking downside extension

NZD/USD bears are in control below critical daily resistance.
bears will seek a break of near term support and a downside continuation below recent daily lows.

Ross J Burland FXStreet

As per the prior analysis, NZD/USD Price Analysis: Bears lurking at 21-day EMA, the bears are indeed in control from anticipated resistance and a downside daily extension could be on the cards.

Prior analysis

''NZD/USD is testing the bearish commitments from the prior support structure that would be expected to act as resistance.

A 50% mean reversion is significant and failures at resistance could lead to a downside continuation below the current daily support structure.''

''The 21-EMA and the confluence with the prior lows and the 50% mean reversion level offers a convincing case for the bears.''

Live market analysis, daily chart

Bears taking out the 21-day EMA to the downside is significant and a break of a family liquidity zone that is current support will be convincing.

A continuation to the downside below the prior daily lows is on the cards at this juncture but a daily close below the current structure would be preferable as further confirmation.

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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