NZD/USD Head and Shoulders Breakout…Redux
Chart Prepared by Jamie Saettele, CMT
-Recent updates have noted that “the break of the January-May trendline, combined with the head and shoulders top, indicates potential for Kiwi to drop below .6600 and that “NZD/USD has turned up and is testing the mentioned trendline from below (as resistance). Strength through this level would suggest that the breakdown earlier this month is a ‘trap’.” NZD/USD pushed above the trendline, triggering what I thought was a ‘trap’. Turns out THAT was a trap on the other side. Risk is lower and considerably so given the head and shoulders pattern.