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  • NZD/USD bears wait patiently for confirmations to the downside. 
  • Monthly reverse head and shoulders still in play. 

NZD/USD is expected to follow the reverse head and shoulder pattern on the monthly chart. 

The bears will seek a weekly head and shoulders to confirm this and now await for daily supports to break.

The following is a topdown analysis to demonstrate the prospects for the bearish case.

Monthly chart

The weekly chart offers a bearish head and shoulders:

The price is expected to form a right-hand shoulder of a bearing head and shoulders within the overall bullish reverse head and shoulders. 

Daily chart

We have two supports to bypass.

On a break of the first support, a retest of it should confirm it as a new dominant resistance which can result in a break to the downside to bypass the second support.