NZD/USD Price Analysis: A descending triangle pattern emerges on the 4-hour chart

• NZD/USD trades 0.37% higher on Wednesday as risk sentiment improves.
• The market has been consolidating since hitting a high of 0.6584.

NZD/USD 4-hour chart

NZD/USD has been trading higher on Wednesday after the risk sentiment in equities improved and the USD pulledback. The pair has been on a very good uptrend but has stalled recently after hitting the high on the chart of 0.6584.

The key feature on the chart is the descending triangle pattern. The bottom of the pattern is a key support, the level currently stands at 0.6383. If the pattern breaks to the upside then the orange line at the highs could be the next resistance. 

The MACD indicator is looking pretty bullish at the moment. The histogram is trading in the green but the signal lines have also moved about the zero level. The Relative Strength Index is also in a positive area above the 50 line. There is still some room to the upside and if the pattern does break then the signal line is sure to hit the overbought zone. 

Additional levels