• The outlook will be bullish ahead if buyers can breach the resistance of 0.6564.
• The downside will be opened if the price breaks below 0.6417. 

As per the prior analysis, NZD/USD Price Analysis: Bulls need to break a key weekly level at this juncture, it was stated that the bulls need a clean break of the resistance or they will risk facing a firm move by the bears. Indeed, the bears have played their hand since the analysis and the price is being forced lower to test a potential support structure. The following illustrates the state of play on a multi-timeframe basis:

NZD/USD prior analysis

''The prior resistance on the daily and 4-hour charts that have a confluence with the daily Fibonacci scale would be expected to act as a support structure for the coming sessions.''

NZD/USD live market

As illustrated, the price has indeed moved towards the support area, so the question is whether the bulls will commit here to throw in the towel, pressured by the bears.  

If the bears over-power the bulls, following some initial resistance from the bulls, then the case of a bearish head and shoulders could be made:

The price imbalance between the prior lows of 0.6417 to the 18 and 19 May support near 0.6290 will be vulnerable to mitigation. 

This scenario would coincide with the weekly outlook as follows:

Or, if the bulls do maintain control, the outlook could be very bullish ahead if they can breach the resistance of 0.6564: