NZD/USD Price Analysis: The bird is perched on a broken branch of the week's bearish template

NZD/USD bears are lurking at key structures.
The day ahead could be a whitewash for the bird if the US dollar rallies.

Ross J Burland FXStreet

NZD/USD could be on the verge of a final long squeeze into positions that have been in the money since the start of the week. The US dollar is ripening for a rally from key daily support as US yields tear into fresh bulls cycle highs. The following illustrates the prospects for a sell-off into last week's lows for a fresh low on the week down to 0.5512. this is below the daily ATR of 97.

NZD/USD daily chart

NZD/USD H1 chart, weekly template

The bird is perched on a broken branch of this week's bearish template, hovering over longs like a guillotine given that this structure was already broken in Tokyo on Wednesday. The price is below the daily peaks and the M-formation's neckline and recently broken structure 2 at 0.5682. There are prospects of a break of structure 1 0.5661 again for the sessions ahead.

If the bears can get below there, 0.5650 will be eyed as the final structure that guards in-the-money long positions to the start of the week's prices near 0.5550 and then last week's bear cycle lows of 0.5512.

For now, eyes are being kept on US yields:

US 2-year yields and DXY

The yield is paying out at the highest levels in years and remains on the front side of the trendline. A test into the W-formations support and the trendline support could be underway for the way ahead, but should the yield move higher, the US dollar could take off and be the catalyst for the long squeeze in the kiwi.

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 climbs to daily highs near 1.1820

EUR/USD now picks up pace and advances to the area of daily peaks north of the 1.1800 barrier at the end of the week. The pair’s decent move higher comes against the backdrop of a generalised lack of direction in the FX galaxy and the mild offered stance in the US Dollar.

GBP/USD trims losses, retests 1.3460

After briefly challenging its key 200-day SMA near 1.3440, GBP/USD now manages to regain some balance and revisit the 1.3460 zone on Friday. Cable’s pullback comes as the selling pressure on the Greenback gathers traction, reigniting some recovery in the risk-linked space.

Gold flirts with four-week highs past $5,200

Gold extends its rebound, climbing for a third consecutive session and pushing back above the $5,200 mark per troy ounce on Friday. The move higher continues to draw support from lingering geopolitical tensions and the ongoing uncertainty surrounding US trade policy, both of which are keeping safe-haven demand firmly in play.

Bitcoin, Ethereum and Ripple consolidate with short-term cautious bullish bias

Bitcoin, Ethereum and Ripple are consolidating near key technical areas on Friday, showing mild signs of stabilization after recent volatility. BTC holds above $67,000 despite mild losses so far this week, while ETH hovers around $2,000 after a rejection near its upper consolidation boundary.

Changing the game: International implications of recent tariff developments

The Supreme Court ruling on International Emergency Economic Powers Act (IEEPA) tariffs provides limited relief for the rest of the world, with weighted average tariff rates modestly lower.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.