January 29, 2023

Weekly M-formation in play, bulls look to 0.6950, bears to 0.6700

  • NZD/USD bulls stepping in at critical daily support. 
  • Bulls will aim for a breakout of recent highs towards 0.6950. 
  • Bears seeking a break of the daily support are a retest of current lows near 0.67 the figure. 

NZD/USD is attempting to correct to the upside and the following illustrates the M-formation’s neckline on the weekly chart where bulls could be headed. 

NZD/USD weekly chart, M-formation 

Daily chart

The daily chart is a complex mix of choppy price action that could instead be thought of as accumulation. Buyers are building a portfolio of a position averaging out at the cheapest price possible.

However, given the strength of the recent sell-off, there is every possibility of a continuation of the downside still:

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