NZD/USD Technical Analysis April 8th 2014

The New Zealand dollar is heading into some potential resistance and may be forming a head and shoulder reversal pattern hinting a turn lower is ahead. Neckline support reinforced by long term fib support is at 0.85 and the potential head is at 0.87 as seen on the chart. It may be premature to enter short at this point before the head and shoulder is confirmed but it should be watched carefully. Also it makes sense that the pair stalled around 0.87 because the 2013 high was at around this level (0.867). The downtrend line from 2011 further supports the bearish case for a move lower.


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