There Could Be A Drop And A Test Of the NZD/USD Local Low

It appears the NZD/USD is about to form a flag or a pennant on the monthly time frame.
 

This is the largest possible time frame and the potential development of such a figure will take months, but its possible target is worth the wait.

 On the W1 time frame there is another fully developed flag and the pair with a breakout below the support trend line. If the pair reaches the limit of that flag we could see a drop to around 0.6250-0.6220 which means a test of the local low from August – September 2015.

The other possible target is 1500 pips away from the breakout level.

The third long term scenario is another rally after the possible drop and test of the local low, which would lead to the development of the above mentioned flag or pennant figure.