NZDUSD: Well Supported

NZDUSD failed to reach the ideal target of the head and shoulders pattern, rallying back above the neckline of the pattern, which forms a new neckline for a double bottom formation. The recent dip towards the neckline was re-bought, as price formed a pin bar indicating renewed demand. A break above the recent minor swing high at 0.8340 resistance areas should confirm another leg higher towards the 127.1% extension as a first target followed by 0.8400 areas.

A break back below 0.8300 will probably negate this scenario, and could be a negative reversal signal. That will strongly indicate a sideways market with no clear bias.

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