A recent breakout to the upside above the downward trend line took place on 22 May. Since then, the market has been bullish, as shown on the chart.
This resulted in a rapid uptrend advance to the next price zones around 0.7150-0.7230 (Key Area) and 0.7310-0.7380 that has been temporarily breached to the upside.
Recent bearish decline has been run to the range of prices of 0.7310-0.7380 (newly established at the request of the area) which does not have enough support bullish for the NZD/USD pair.
Re-consolidation below the price level of 0.7300 improved the bearish side of the market. The NZD/USD pair again to 0.7230-0.7150 (Key) of the Area that has not been able to pause the continuation of the bearish momentum.
An atypical Head and Shoulders pattern was expressed on the depicted graph, indicating a high probability of bearish reversal as bearish persistence below the neckline 0.7150 is maintained.
As expected, the price level of 0.7050 did not provide enough bullish support to the NZD/USD pair. Therefore, the continued downward decline should be expected towards 0.6800 (Reversal of the bearish trend of the target).
However, if the recent low (0.6817) remains defended by the bulls, a bullish pullback towards 0.7050 and short-term BUY entry can be expected during this week, consolidations.
On the other hand, The next DEMAND level to meet the pair is located about 0.6710 that can be visited if sufficient downward pressure is applied below 0.6800.