• NZD/USD W-double bottom has formed and a break of 0.6400 could trigger the bullish bias further for a look-in at 0.6420.
• 0.6420 guards key resistances ahead of the price imbalances (PIs) above.
• If 0.6420 holds, convincingly, i.e. on a number of tests, then the blow-off could come sooner than later.

NZD/USD bulls are making their moves from double-bottom lows following the sell-off that occurred on the back of the Aussie jobs data that attracted bears into the market at key support, taking trapped bulls for a ride to 0.6900 and then 0.6870 lows. NZD/USD has mirrored the Aussie in this regard and the following illustrates the prospects of a move higher before the next slide.

NZD/USD weekly and daily charts

Assuming the price is on course for the trendline resistance, the W-formation is compelling in this regard with support seen at 0.6300 with the 0.6530s targeted to confirm the bias towards 0.6670s trendline resistance. 

NZD/USD H1 chart

Dealing with the matter at hand, the price is forming a W-double bottom and a break of 0.6400 could trigger the bullish bias further for a look-in at 0.6420 that guards key resistances ahead of the price imbalances (PIs) above. Given that the price is on the backside of the trendline, however, the bias is to the downside and if 0.6420 holds, convincingly, i.e on a number of tests, then the blow-off could come sooner than later from which point the bullish thesis to the daily trendline resistance will be reassessed vs. a downside continuation below 0.6300.