Forex: NZD/USD, a double bottom or a descending triangle?

FXstreet.com (London) - The NZD/USD may have started to form a pattern, which the bears would suggest to be a descending triangle formation. The chart could be looked at as building up to be a bearish pattern, with a series of lower highs with a strong level of support.

It has consolidated after its decline from April highs, where it failed to break the 0.8700 handle. It has been well supported of late around 0.8360, and the bulls hope for this to actually be forming a double bottom along SMA 50. Otherwise, it may break to test much lower lows.

Bulls will be looking for a break above 0.8500 and the SMA 200 for a continuation of a come back within its longer-term trend line for a decisive move higher.

A breakout below 0.8300 and into 0.8200 territories may put the rising longer-term trend in doubt.