NZD/USD Technical Analysis: Head-and-shoulders on 1H

• NZD/USD's hourly chart is reporting a head-and-shoulders (H&S) pattern. 
• A break below 0.6590 is needed to confirm an H&S breakdown. 

NZD/USD has created a head-and-shoulders pattern with the neckline support at 0.6590 on the hourly chart. 

An hourly close below that level would confirm a head-and-shoulders breakdown - a transition from the bullish higher lows, higher highs to bearish lower highs, lower lows. 

A breakdown, if confirmed, would open the doors for 0.6544 (target as per the measured move method). 

The case for a pullback looks stronger if we take into the bearish inverted hammer candle created on Friday. 

At press time, NZD/USD is trading largely unchanged on the day at 0.6596.

Hourly chart

Trend: Bearish

Technical levels