NZD/USD Technical Analysis: Falling channel breakout on 1H

• NZD/USD's hourly chart shows a descending channel breakout. 
• The outlook remains neutral with lower highs setup still intact. 

NZD/USD's hourly chart is reporting a falling channel breakout. 

Even so, it is too early to call an end of the pullback from the Jan. 2 high of 0.6733 has ended, as the bearish lower highs pattern is still intact.

An hourly close above 0.6675 is needed to invalidate the lower highs setup on the hourly chart and confirm a bullish reversal. That would open the doors for a re-test of recent highs above 0.67. 

At press time, NZD/USD is trading at 0.6665, having hit a low of 0.6651 an hour ago. The pair fell 0.50% on Friday as US airstrike on Iranian militia triggered risk aversion. The two nations have moved closer to a direct confrontation in the last 48 hours. 

Hourly chart

Trend: Bullish above 0.6675

Technical levels