NZD/USD Technical Analysis: Trapped in a pennant

• The NZD/USD has charted a pennant pattern on the hourly chart.
• A break below the lower edge of the pennant would signal a continuation of the retreat from the Oct. 21 high of 0.6611 and would shift risk in favor of a drop to 0.65 (psychological support).
• On the other hand, a bullish breakout would allow a re-test of the resistance of the trendline connecting April highs and Sept. 26 high. As of writing, the trendline resistance is seen at 0.6580.
• The outlook as per the daily chart remains bearish as long as the pair is trading below 0.6611.

Hourly Chart

Spot Rate: 0.6556

Daily High: 0.6558

Daily Low: 0.6546

Trend: Neutral

Resistance

R1: 0.6559 (pennant resistance)

R2: 0.6580 (trendline resistance)

R3: 0.66 (psychological hurdle)

Support

S1: 0.6549 (pennant support)

S2: 0.6535 (pennant low)

S3: 0.65 (psychological support)