NZD/USD Price Analysis: Bulls Eye 0.6300 as Bears Eye Distribution Signs

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  • The NZD/USD bears could be about to make their moves.
  • The bulls intend to test 0.6300 while above 0.6250.

Based on the above analysis, NZD/USD Price Analysis: the bird is in full flight, so the bulls trailed higher in Asian trading despite the ground it had already made since the central bank events in the week, made all-time highs as follows:

Previous NZD/USD analysis

NZD/USD Update

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Although the trend line was broken, the support held and the price moved higher. At this juncture, the bulls need to commit in the upper quarter of the 0.62 area. However, the top is a bearish candlestick combination pattern that shows that sellers are in the market.

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Price is now testing the next trend line support, a break there opens the risk of a move lower to test below 0.6250 and with eyes on the previous lows of 0.6236 and the trend line before 0.6200:

That being said, it would be unusual for the market to simply melt without revisiting the top formation, as the distribution takes a while to develop, typically based on the following 15 minute chart top scenario:

NZD/USD M15 chart

Source: Fx Street

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