Kiwi bulls may start to worry.

The NZDUSD is exhibiting all the characteristics of a bear flag pattern and anyone who is a “NZD bull” should be concerned. First of all, the consolidation since December of 2021 has been a bearish consolidation not above to get back above the 38% retracement of the Oct 2021 highs to December 2021 lows. The “bear flag” has been masked as a nice “ascending channel.” Daily RSI has come back to neutral giving the pair the ability to make another leg lower if needed. A break of the .6740 level would open the .6700 key support test. A decisive break of this level would target the .6400 level. Not something “NZD bulls” want to hear.

Blake Morrow