Last week, NZD/USD formed a small price bottom and continued to rally when after the a FOMC reaction pressured the greenback across the board. NZD/USD 1H Chart 8/1(click to enlarge)Turning bullish?- As we can see, the NZD/USD has turned bullish at least in the 1H chart.- Price has formed a bottom and has since broken and stayed above the 200-, 100-, and 50-hour simple moving averages (SMAs)- The RSI has pushed above 70, and has held above 40 - this shows development of bullish momentum. A bearish correction ahead- After the latest upswing to end the month, NZD/USD could be exhausted.- The first sign of pending bearish correction is the double top that formed in the 1H chart. - Now, we do have to consider the fact that the double top itself is a completed consolidation pattern. - It's just that price has broken below, so we might get even more consolidation but to the downside. - I think we can anticipate a dip towards the 0.7120-0.7125 area.- This is a critical support/resistance pivot that might be reinforced by a rising trendline. - Expect some support here around 0.7120.- However,a break below 0.71 on the other hand would signal a bearish continuation, with the 0.70-0.7020 area, then the 0.6950-0.6965 area in sight.