- 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.
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.
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.