AUD/NZD Price Analysis: Teasing inverse head-and-shoulders breakout

AUD/NZD has carved out an inverse head-and-shoulders (H&S) pattern on the weekly chart.
A breakout looks likely as the pair is trading well above the H&S neckline hurdle.

Omkar Godbole FXStreet Contributor

AUD/NZD is currently trading at 1.0921, the highest level since October 2018.

A close above 1.0887 on Friday would confirm an inverse head-and-shoulders breakout on the weekly chart. That would imply a reversal higher from the nine-year-long bear market, which began at highs near 1.3795 seen in 2011.

A breakout, if confirmed, would expose the major hurdle lined up at 1.1175 (Aug 2018 high).

Bigger gains, however, may not happen immediately as the 14-day relative strength index is reporting extreme overbought conditions. As such, the pair may consolidate or revisit the neckline support (former resistance) at 1.0877 before capitalizing on the bullish breakout.

Weekly chart

Trend: Bullish

Technical levels

AUD/NZD

Overview
Today last price	1.0922
Today Daily Change	0.0003
Today Daily Change %	0.03
Today daily open	1.0919

Trends
Daily SMA20	1.0774
Daily SMA50	1.0709
Daily SMA100	1.0653
Daily SMA200	1.0538

Levels
Previous Daily High	1.0928
Previous Daily Low	1.0878
Previous Weekly High	1.0866
Previous Weekly Low	1.0716
Previous Monthly High	1.0802
Previous Monthly Low	1.0559
Daily Fibonacci 38.2%	1.0909
Daily Fibonacci 61.8%	1.0897
Daily Pivot Point S1	1.0888
Daily Pivot Point S2	1.0858
Daily Pivot Point S3	1.0838
Daily Pivot Point R1	1.0938
Daily Pivot Point R2	1.0958
Daily Pivot Point R3	1.0988

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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