Possible bearish breakout on the NZD/USD.

The Kiwi has been falling strongly today versus the Dollar after it completed a very nicely formed pullback to the 55 Day Exponential Moving Average (purple line). We say that the pullback is nicely formed, because first of all the breakout of the 55 EMA is confirmed by a few bearish candles below that level and then the pullback is completed with some average sized candles back to the 55 EMA. We can clearly see that after the pullback the price dropped like a rock and breaks below the 0.8500 level.

From this point on a couple of things may happen. A possible scenario is that the price continues falling and reaches the 200 Day EMA (blue line) around the 0.8416 level from where it may bounce to the upside. The other thing that we may see is a false breakout of the 0.8500 and prices may try to visit the 55 EMA again or even get to the 0.8600 level again.