Kiwi creates a promising bearish pattern

The weakest currency among majors is currently the New Zealand Dollar, so let’s check the situation on the NZDUSD if it has any promising bearish price action setup.

A quick look at the chart and we already can find something extremely interesting. The price just formed the Head and Shoulders pattern (grey) and now is trying to establish the breakout of the neckline (red) of this formation. Apart from the neckline, we also have two up-trend lines here. Shorter, black, which connects higher lows since the middle of November, and the longer one, connecting lows from the middle of October.

NZDUSD breaking those three supports (2 up trendline and the neckline), will be a proper, long-term sell signal. As for now, buyers have the last chance for defense but the clock is ticking and pressure is rising. Price coming back above the black up trendline would cancel the negative sentiment but chances for that are rather low.