NZD/USD Price Analysis: Bears eye a retracement opportunity

NZD/USD bulls are taking on major resistance as the greenback falters.
Bulls eye a break of recent highs but bears are lurking.

Ross J Burland FXStreet

NZD/USD has come up into a major resistance and it begs the question as to whether the bulls will stay the course as we head into critical events on both the United States and New Zealand's calendar.

The following illustrates the recent surge higher on the back of the US Dollar'ssoftness and the prospects of a meanwhile correction for the sessions ahead.

NZD/USD daily chart

As illustrated, the Kiwi has bottomed leaving behind a W-formation:

The price is meeting a daily trendline resistance and has left the harmonic pattern as a reversion prospect to 0.6200:

DXY index

Meanwhile, the US Dollar is under pressure still while below its own resistance trendline:

The US Dollar index bottomed around the 102 neighbourhood despite global and US recession concerns. Nonetheless, the prospects of a less aggressive Federal Reserve have spooked investors away from the greenback. Unless the bulls can get on the backside of the trend, there are serious prospects of a blow-off that could properly the Kiwi much higher.

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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