NZD/USD Price Analysis: Defends 0.71 despite a head-and-shoulders breakdown

• NZD/USD trades largely unchanged on the day near 0.7120.
• Friday's head-and-shoulders breakdown fails to entice sellers.

NZD/USD is showing resilience to a bearish reversal development on technical charts. 

The pair confirmed a head-and-shoulders (H&S) breakdown on the 4-hour chart signaling a trend reversal lower on Friday. The breakdown opened the doors for a sell-off to 0.6980 (target as per the measured move method). 

So far, however, the sellers have struggled to penetrate the psychological level of 0.71. Meanwhile, the upside remains capped at the H&S neckline resistance (former support). 

The bias would remain bearish while the pair is held below the neckline, currently at 0.7140. A break above that level would invalidate the bearish outlook and shift risk in favor of a rally to resistance at 0.7240. 

4-hour chart

Trend: Bearish

Technical levels