• NZD/USD is on the verge of either a break to the upside or restest of critical support that could open the downside. 
• The bears are seeking a weekly downside extension, but the M-formation is a bullish reversion pattern. 

With the recent lower low in NZU/USD and the bearish impulse on the daily chart, the bears could be in the running following the restest of the 61.8% Fibonacci retracement level.

NZD/USD daily chart

However, the prospects for a deeper downside move are reinforced by the weekly chart as follows:

On the other hand, should the price hold at this support, then a deeper test of the M-formation's neckline would be expected to play out into the hands of the bulls:

NZD/USD H4 chart

The 4-hour prospects are also less bearish while the price is holding above the meanwhile support near 0.68 the figure. Only a break of there will enable the daily outlook a chance to play out.