NZDUSD - A Breakout of Consolidation

The Kiwi was the final pair that we discussed in today's video and this chart only partially does the trade justice since we're not able to look at the higher timeframe. But if you were to look on the daily chart you'll see that we've recently broken a key level of structure support and have now retraced back down into it forming a potential head and shoulders pattern. A violation of the neck line would confirm the H&S which would give us a potential bearish move, but a violation of the left shoulder would give me confidence in the bullish continuation which in my option is the stronger potential.

The one monkey wrench that the market will throw at us is the Inflation news that comes out tonight (11pm NY) and the monetary policy release later this week.

Akil