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NZD/USD has backed off from the session high of 0.7196 to trade near 0.7180. That level is currently housing the upper end of the falling channel identified by trendlines connecting Jan. 6 and Jan. 14 highs and Jan. 11 and Jan. 18 lows. 

A close above 0.7180 would confirm a breakout and validate the 14-day Relative Strength Index’s upside break of descending trendline, paving the way for a re-test of the Jan. 6 high of 0.7315. 

However, a potential failure to take out the channel hurdle, if followed by a move below 0.7165 (session low), will likely yield a drop to 0.71.

Daily chart

Trend: Teasing bull breakout

Technical levels