NZDUSD Bearish Head and Shoulders

A very nice and clear Head and Shoulders, with all the “textbook” elements can be seen in this pair.

As we can see, the precedent Bearish Butterfly Harmonic Pattern is very clear and confirmed by price action after 0.5787 high. Also the Double top almost occurred at this level confirms the presence of a H&S pattern.

I expect price to go begin drop at 0.5664 – 0.5716 area, to conform the right shoulder of the pattern.

Even though the potential of the pattern is around 220 pips, this reversing point can move price 500 pips down to 0.5100 level and after that (deeper), can signifies the weekly bearish trend resuming after a 924 pips pullback from 0.4890.

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