NZD/USD Break above 0.6559 needed to validate falling wedge breakout
Our preference: the upside prevails as long as 0.6547 is support.
Alternative scenario: below 0.6547, expect 0.6526 and 0.6514.
NZD/USD witnessed a falling wedge breakout on May 24 only to fall back to 0.65 on May 30.
As a result, a daily close above 0.6559 (May 27 high) is needed to validate the wedge breakout.
NZD/USD is currently trading at 0.6543, representing 0.14% gains at press time.
The pair had closed at 0.6550 on May 24, confirming a falling wedge breakout –
a bearish-to-bullish trend change – but topped out at 0.6559 on May 27 and fell back to 0.6494 on May 30, invalidating the bullish breakout.
As a result, the pair needs to close above 0.6559 (May 27 high).
That would establish bullish higher highs and higher lows pattern and revive the falling wedge breakout confirmed on May 24.