NZD/USD Price Analysis: Bears stay in control but correction could be on the cards

• NZD/USD bulls are moving as the weekly cycle gets underway on the bid.
• Bears will eye the 50% mean reversion as a structure to protect. 

New Zealand Dollars took a step back due to a number of factors on Friday, including a drop in European bond yields that ended up benefiting the US dollar ahead of the critical jobs data. The price dropped to test a key support area but the bulls are looking to step in. As part of the weekly cycle, we can see that there are now prospects of a correction to start the week to set up the moves for midweek.

NZD/USD daily chart

The price dropped to test a key support area but the bulls are looking to step in. As part of the weekly cycle, we can see that there are now prospects of a correction to start the week to set up the moves for midweek. A break of 0.6300 will be required to flip the bias into the bear’s favour despite the market being on the backside of the broken trend. The 0.6500 areas are the key objective for the bulls but should the bears commit at a 50% mean reversion near 0.6420, then that should be fueling the appetite for the next major move to the downside.