NZD/USD closed yesterday at 0.6768, confirming a downside break of the three-month narrowing price range or contracting triangle.
The range breakdown indicates the path of least resistance is to the downside. As of now, however, the kiwi dollar is reporting moderate gains.
Markets usually crowd out weak hands before building on the major breakdown or breakout. So, NZD/USD could revisit levels above 0.68 (lower edge of the triangle) before falling toward the 200-day MA of 0.6747.
Daily chart
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Trend: Bearish if resistance at 0.68 reverses gains
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