NZD/USD technical analysis: Break above 0.6559 needed to validate falling wedge breakout

• NZD/USD witnessed a falling wedge breakout on May 24 only to fall back to 0.65 on May 30.
• As a result, a daily close above 0.6559 (May 27 high) is needed to validate the wedge breakout.

NZD/USD is currently trading at 0.6543, representing 0.14% gains at press time.

The pair had closed at 0.6550 on May 24, confirming a falling wedge breakout –   a bearish-to-bullish trend change – but topped out at 0.6559 on May 27 and fell back to 0.6494 on May 30, invalidating the bullish breakout.

As a result, the pair needs to close above 0.6559 (May 27 high). That would establish bullish higher highs and higher lows pattern and revive the falling wedge breakout confirmed on May 24.  

A daily close above 0.6559, therefore, could be followed by a rally to the 0.6707 (Jan. 22 low).

Daily chart

Trend: Bullish above 0.6559

Pivot points