NZD/USD Technical Analysis: Flashing red for third day, eyes rising wedge breakdown

• NZD/USD’s daily chart shows a bearish reversal candlestick pattern.  
• The pair is also teasing a rising wedge breakdown.  

NZD/USD is currently trading at 0.6367, representing a marginal loss on the day, having dropped 0.37% and 0.42% on Monday and Tuesday, respectively.  

On Monday, the pair faced rejection at the 100-day moving average (MA) and created a bearish outside day candle. The bearish reversal signaled by Monday’s candle was confirmed by Tuesday’s bearish follow-through.  

The daily chart also shows a rising wedge breakdown, a sign the bounce from 0.6204 has ended and the bears have regained control. The pair, therefore, could drop to 0.6269 (Sept. 3 low) and may extend losses to 0.6241 (Oct.16 low).  

On the higher side, a close above the 100-day MA at 0.6459 is needed to confirm a bullish reversal.  

Daily chart

Trend: Bearish

Technical levels