NZD/USD Price Analysis: Bulls eye a significant correction to the upside

NZD/USD bulls in the market and eye a move to test resistances.
The weekly M-formation is a compelling feature in this regard.

Ross J Burland FXStreet

New Zealand Dollars rebounded from earlier dips on Monday, helped by China's data showing an accelerated recovery in the services sector. Additionally, the surprise hawkish decision from the Reserve Bank of Australia (RBA) has tugged the Bird along as well. At the time of writing, NZD/USD has rallied from the week´s peak low area finding support around the 0.6050s.

The following will illustrate the bias for an upside move on Wednesday:

NZD/USD weekly chart

The weeklñy M-formation is compelling. This is a reversion pattern and the bulls are moving in for a target toward the neckline and a 61.8% Fibonacci. This meets the trenmdlñine resistance as well.

NZD/USD daily chart

The daily chart aligns with the bullish bias as for the support area that is holding so far:

The correction was a 50% mean reversion that has held the test of time and bulls stay in control.

The levels to watch on the upside are highlighted above.

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.

EUR/USD nears 1.1600 after a volatile day

EUR/USD trades near the 1.1600 mark, boosted late in the American session by news coming from the White House. US President Donald Trump announced a deal with Iran to be signed "soon" by the Middle Eastern country, hinting at probably the weekend. Trump also canceled the planned attacks for Friday.

GBP/USD recovers above 1.3400 on USD selloff

GBP/USD is back firm above 1.3400 with the Greenback giving up most of its weekly gains, following headlines coming from the United States signaling US President Donald Trump signed a proclamation in which he announced that a deal with Iran is pretty much sealed.

Why is the Gold price rebounding amid easing US-Iran tensions?

Gold price trades in positive territory near $4,240 during the early European session on Friday. The precious metal rebounds from a six-month low after US President Donald Trump said he canceled planned military strikes against Iran, fueling hopes that a US-Iran truce deal is close.

Crypto Today: Bitcoin, Ethereum, XRP rebound broadens despite continued US-Iran strikes

Bitcoin steadies its recovery on Thursday, edging higher toward $63,000 despite incessant capital outflows. Meanwhile, altcoins, including Ethereum and Ripple, exhibit subtle rebound signs, trading above $1,650 and $1.12, respectively.

AI Crypto Forecast: Bittensor, Near Protocol, Internet Computer rebound gains traction

Cryptocurrency prices are broadly rising on Thursday, following an overstretched downtrend. Despite sticky geopolitical tensions in the Middle East, tokens at the intersection of the blockchain technology and Artificial Intelligence (AI), including Bittensor (TAO), Near Protocol (NEAR) and Internet Computer (ICP) are testing recovery potential.

4.2% headline, 0.2% core: Why the Fed's next hike may be targeting the wrong problem

May's CPI put headline inflation at 4.2% on the year, up from 3.8% in April and the hottest reading since April 2023, while core prices rose just 0.2% on the month, undershooting the 0.3% consensus and halving April's pace.