- The NZD/USD has charted a pennant pattern on the hourly chart.
- A break below the lower edge of the pennant would signal a continuation of the retreat from the Oct. 21 high of 0.6611 and would shift risk in favor of a drop to 0.65 (psychological support).
- On the other hand, a bullish breakout would allow a re-test of the resistance of the trendline connecting April highs and Sept. 26 high. As of writing, the trendline resistance is seen at 0.6580.
- The outlook as per the daily chart remains bearish as long as the pair is trading below 0.6611.
Hourly Chart
Spot Rate: 0.6556
Daily High: 0.6558
Daily Low: 0.6546
Trend: Neutral
R1: 0.6559 (pennant resistance)
R2: 0.6580 (trendline resistance)
R3: 0.66 (psychological hurdle)
Support
S1: 0.6549 (pennant support)
S2: 0.6535 (pennant low)
S3: 0.65 (psychological support)