We can see NZDUSD trading towards 2000 lows. This is what the monthly time frame says
The above head and shoulders pattern is unfolding since the 2008/2009 financial crisis lows. It's not the best pattern I've seen, but it does pass the test. What's incredible, however, is where the measured target is located. A measurement from the neckline to the top of July 2014 gives us a high of about 2,800 pips. If we measure 2,800 pips below the June 2018 crash, we will get a target of 0.4000 or so. Knowing that the lowest levels of 2000 to 2001 lie below 0.3970.
We may be wrong about all of this. New Zealand as a food producing country on the verge of a full exit from the coronavirus lockdown gives that equal chance of recovery, but if we ignore that and focus only on the technical side pairs like the NZDUSD continue to appear bearish as multi-year topping patterns unfold. Like the ones mentioned above.
In all cases, this scenario is only activated in the near term, if the pair breaks below 0.5960 and targets 0.5860, followed by 0.5650 and 0.5470