• NZD/USD Price Analysis: Bulls need to step up from hourly support

Market news

22 June 2022

NZD/USD Price Analysis: Bulls need to step up from hourly support

  • NZD/USD is meeting the demand area which opens risk to the upside.
  • A 61.8% ratio reversion to 0.6317 could be on the cards.  

NZD/USD has been pressured but there is potential for a reversal that is taking shape on the lower timeframes identified on a 1-hour analysis and then down to a 5-min entry condition as follows:

NZD/USD H1 chart

The 1-hour time frame is broadly bearish following the break of structure below the counter trendline as illustrated above. However, there is a meanwhile correction that likely needs to take place. 

We can see more closely in a zoomed-in version of the same chart and schematic that the price has left an M-formation. These are reversion patterns and should support hold, then there the likelihood of a correction is probable. 

From a five-minute perspective, the price is meeting the demand area and a break of structure to the upside will open the risk of a 61.8% ratio reversion to 0.6317 or into the neckline of the hourly M-formation at 0.6327

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