NZD/USD Price Action: Bears Are Breaking Down Structure, Eye An Extension

NZD/USD remains on the backfoot following the Reserve Bank of New Zealand confirming it would ease mortgage loan-to-value ratio (LVR) restrictions from June 1. The technical outlook is bearish for the meanwhile, but there could be prospects of a bullish correction for the week ahead as the following illustrates.

NZD/USD weekly chart

The weekly chart shows the M-formation´s last leg penetrating prior lows that might be regarded as stucture and such a move signifies a market that is breaking down. However, in the meanwhile, a correction could be coming up. 

 

NZD/USD daily chart

 

The market is headed toward a support structure but should the bulls turn up, a correction towards 0.6080-0.6112 could be on the cards.


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Disclaimer: Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only ...

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