Breakdown of the 0.7400 level on the NZD/USD

The NZD/USD managed to find a good support zone at the 0.7400 level as shown on the daily chart and the pair formed what it appears to be a head and shoulders pattern. The 0.7400 level has acted as its neckline, but the pair breaks below that zone during today’s session. The US Dollar has been gaining strength versus its main counterparts after the NFP numbers out of the US came out better than expected. Therefore, the NZD/USD may try to continue falling. In case of a bearish continuation, the pair may find some support around the 55 day exponential moving average (purple line), which is currently just above the 0.7300 level. In case of a breakdown below the 0.7300 level, the NZD/USD may find a better support at the 0.7200 level, which has already acted as a good support in the past. The 200 day EMA (blue line) may also act as a support. To the upside, the most important resistance levels are the 0.7500 zone and the high at the 0.7559 level.