- NZD/USD’s hourly chart is reporting a head-and-shoulders (H&S) pattern.
- A break below 0.6590 is needed to confirm an H&S breakdown.
NZD/USD has created a head-and-shoulders pattern with the neckline support at 0.6590 on the hourly chart.
An hourly close below that level would confirm a head-and-shoulders breakdown – a transition from the bullish higher lows, higher highs to bearish lower highs, lower lows.
A breakdown, if confirmed, would open the doors for 0.6544 (target as per the measured move method).
The case for a pullback looks stronger if we take into the bearish inverted hammer candle created on Friday.
At press time, NZD/USD is trading largely unchanged on the day at 0.6596.
Hourly chart
-637121474456340810.png)
Trend: Bearish
Technical levels
Share
