NZDUSD bulls moving in for the kill and eye daily price imbalances

• NZDUSD bulls remain in play as the greenback keeps shedding ground.
• US CPI surprised to the downside and the relief rally in high beta currencies is in play. 

NZDUSD rallied on Thursday on the back of the US inflation data which was a relief to markets as it missed the mark and fanned the flames of a Federal Reserve pivot. As per the past series of technical analyses on NZDUSD this week, NZD/USD Price Analysis: Bears move in from key highs for the week, and the more recent, NZDUSD Price Analysis: Bears in control with eyes on daily trendline, the trajectory was adhered to ahead of the CPI and downside extremes reached as follows:

NZDUSD prior analysis

As for the daily chart,  the price was bounded by resistance and it was stated that the doji could turn out to be pivotal for the pair and week:

It was stated, if the bears were to commit, then there would be prospects of a test of the broader trendline and a move into the key Fibonacci near 0.5850 in a 50% mean reversion:

The engulfment of the doji was noted as a potentially significant feature.

For the hourly template, this meant a continuation was in order:

Update:

The target was reached before US CPI sent the bird on a tear through all of the mark-down.

Where now?

We need to bring up the daily chart again:

As seen, the trendline has been respected as we are clearing through resistance and we are now moving in on a price imbalance between 0.6026/85:

Such a continuation would coincide with a further downside in the US dollar vs. a basket of currencies:

The price of the US dollar index keeps falling on the day and while there could be more to go, we have the 107.86 target in as a possible support considering it made up a foundation for the highs of the cycle when last visited as support. A break there could be significant but the M-formation is a reversion pattern and a correction to the resistance near 109.63 could be in play if the bulls commit strong hands over the course of the coming days. Nevertheless, a vulnerable US Dollar gives the commodity complex fuel and the bird can glide higher on that.