- NZD/USD bears are lurking ahead of the GDP event.
- Kiwi is higher following the Fed, but bearish technicals prevail.
Ahead of the Gross Domestic Product, NZD/USD is in bullish company, but the longterm outlook is not so rosy.
The following is a top-down analysis pre-data that illustrates where bulls will need to step cautiously no matter the outcome.
Weekly chart
A bearish topping pattern could be in the making on the weekly chart.
Daily chart
The W-formation is a bearish pattern and the 61.8% Fibo is a keen target to the downside as it meets prior resistance.
At least a 50% mean reversion can be expected at this juncture.
1-hour chart
Meanwhile, the data event has the above levels as targets depending on the outcome.
However, following the Federal Reserve, there is some correction required following such a large move in the US dollar and a 50% mean reversion aligns with the prior resistance structure.
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