Bullish flag on the Kiwi

The “Bullish Flag” is a continuation pattern that forms at the end of an uptrend. The pattern forms when the price consolidates after a bullish run and starts going sideways, but with a slight slope to the downside. On the daily chart of the New Zealand Dollar versus the US Dollar we can see that once the price touched the 200 day exponential moving average (blue line), it started correcting to the downside and creating what we call a bullish flag. Today the price breaks below the 0.6700 level and it is close to touching the 55 day exponential moving average (purple line), which is just above the 0.6600 level. The 55 day EMA may act as a support and the price may try to bounce to the upside from there, but if it breaks that zone to the downside, then the bullish flag would be invalidated and the price may try to go and reach the 0.6500 level. To the upside, the 0.6800 may act as a resistance, but the 200 day EMA may act as a stronger resistance on the Kiwi.