Head and Shoulders pattern on the Kiwi

The New Zealand Dollar versus the US Dollar has formed what it appears to be an inverted Head and Shoulders pattern on the daily chart. By breaking above the 55 day exponential moving average (purple line), the price has also broken above the pattern’s neckline or confirmation line. At the moment the price is trying to retrace a little bit, but that is normal in this type of formations. The price may continue higher and the 200 day exponential moving average, around the 0.6803 level may act as its next resistance.