FX.co ★ NZDUSD head and shoulders pattern still possible but still not activated

NZDUSD could still be forming the right hand shoulder. Price is still below the major resistance at 0.67 but also above the key support at 0.65-0.6520. If this neckline support breaks, then the head and shoulders pattern is activated and our target will be at 0.63.

Blue line - neckline support

Red lines - size of downward move if support fails to hold

NZDUSD has short term support the 0.6570 level. Breaking below this level will increase chances of a visit towards the neckline support at 0.65-0.6520. We have to remind that the head and shoulders pattern is activated only if the blue neckline support is broken. If this happens then traders should use the right hand shoulder high as stop and 0.63 as target.