NZD/USD Price Analysis: Defends 0.71 despite a head-and-shoulders breakdown

NZD/USD trades largely unchanged on the day near 0.7120.
Friday's head-and-shoulders breakdown fails to entice sellers.

Omkar Godbole FXStreet Contributor

NZD/USD is showing resilience to a bearish reversal development on technical charts.

The pair confirmed a head-and-shoulders (H&S) breakdown on the 4-hour chart signaling a trend reversal lower on Friday. The breakdown opened the doors for a sell-off to 0.6980 (target as per the measured move method).

So far, however, the sellers have struggled to penetrate the psychological level of 0.71. Meanwhile, the upside remains capped at the H&S neckline resistance (former support).

The bias would remain bearish while the pair is held below the neckline, currently at 0.7140. A break above that level would invalidate the bearish outlook and shift risk in favor of a rally to resistance at 0.7240.

4-hour chart

Trend: Bearish

Technical levels

NZD/USD

Overview
Today last price	0.7122
Today Daily Change	0.0007
Today Daily Change %	0.10
Today daily open	0.7115

Trends
Daily SMA20	0.7152
Daily SMA50	0.7068
Daily SMA100	0.6864
Daily SMA200	0.6627

Levels
Previous Daily High	0.7142
Previous Daily Low	0.7102
Previous Weekly High	0.7241
Previous Weekly Low	0.7118
Previous Monthly High	0.7241
Previous Monthly Low	0.7002
Daily Fibonacci 38.2%	0.7127
Daily Fibonacci 61.8%	0.7117
Daily Pivot Point S1	0.7097
Daily Pivot Point S2	0.708
Daily Pivot Point S3	0.7057
Daily Pivot Point R1	0.7137
Daily Pivot Point R2	0.716
Daily Pivot Point R3	0.7177

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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