• NZD/USD bears are moving in on a key area of support.
• The bulls need to commit above 0.5550 or face significant headwinds for the day ahead. 

NZD/USD has been pressured in the second hour of the Tokyo equities session. It was a volatile start to the day and the US dollar has been whipsawed as traders try to second guess what the central bank of Japan and key officials will do with respect to ''excess FX moves''. 

Meanwhile, the Reserve Bank of New Zealand is committed to getting ahead of the inflation risk which has been something that has been regarded as supportive to the bird. However, the currency has taken a knock in recent trade and is now homing in on a critical support area, as illustrated below. 

NZD/USD prior analysis M15 chart

In the prior analysis, it was stated that ''a break of the dynamics trendline resistance could be an opportunity for traders to look for a discount and target a significant correction towards the midpoint of the day's range near 0.5585 on a break of 0.5575. Bearish below 0.5550.''

NZD/USD update, M15 chart

NZD/USD has since moved into those forecasted highs but has failed to breach them with any conviction leading to a strong downside move. If the bears manage to stay the course, the double-bottom lows will come under pressure and this could lead to further pain for the committed bulls below a critical 0.5550 level.