NZD/USD Technical Analysis: risks pullback on repeated fakeout

The NZD/USD pair could be in for a pullback below 0.68, having failed to capitalize on the triangle breakout last Friday.

Daily chart

As seen above, the pair closed at 0.6839 on Friday, confirming an upside break of the triangle pattern. So far, however, the follow-through has been anything but bullish.

The pair carved out a "gravestone doji" on Monday, which occurs when the day begins on a positive note and ends with sellers pushing prices back to the day's open. So, that candlestick pattern is widely considered as bearish development. Further, it created a candle with a long upper shadow yesterday.

The failure to build on Friday's breakout could embolden the bears to push the spot back to levels below 0.68.

Only a close above 0.6872 (the high of gravestone doji) would revive the bullish view put forward by Friday's triangle breakout.

Trend: Bearish