- ND/USD bears are taking on territory below 0.5900 and eye the 0.5850s.
- The weekly M-formation is compelling and a significant correction could be coming soon.
As per the prior analysis, NZD/USD Price Analysis: Bulls are making their moves but resistance looms, the price indeed made its moves into the resistance but failures have seen the bears pounce and take the bird down into fresh bearish cycle lows.
NZD/USD prior analysis
It was stated that the 4-hour chart's creeping correction to the 50% mean reversion mark made for a bearish outlook going forward.
''Should resistances start to play in, there will be prospects for a downside continuation for the week ahead.''
NZD/USD update
NZD/USD weekly chart
Meanwhile, from a weekly perspective, the price would be expected to correct at some stage soon but perhaps not until a challenge of the 0.5850s. The M-formation is a reversion pattern that could see the price correct towards at least the prior lows near what would be a 38.2% Fibonacci retracement from the aforementioned 0.5850s.