NZD/USD Price Analysis: Over extended bearish impulse
|- NZD/USD bulls are looking to the daily Fibos for a meaningful test of daily resistance.
- Hourly oversold conditions and a break of resistance will expose the daily 50% mean reversion level.
The price of NZD/USD is sitting at a monthly support level that meets a 38.2% Fibonacci retracement level as additional confluence.
At this juncture, the price would be expected to continue higher within the bullish trend.
The following is a top-down analysis that illustrates where the next trading opportunity could evolve from on the lower time frames.
Monthly chart
Daily chart
The bulls have a clear target back to the old support in a 50% mean reversion.
1-hour chart
The oversold conditions are ripening the price for a break of the immediate resistance. A break there will expose the daily target.
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