NZD/USD technical analysis: Inverse head-and-shoulders on D1

The daily chart shows an inverse head-and-shoulders pattern,
A break above the neckline resistance is needed to confirm a bullish breakout.

Omkar Godbole FXStreet Contributor

NZD/USD has created an inverse head-and-shoulders (H&S) bullish reversal pattern on the daily chart over the last 3.5 months.

The inverse H&S neckline resistance is currently seen at 0.6474. At press time, the currency pair is trading at 0.6437, representing a 0.30% gain on the day.

A daily close above that would confirm a bullish breakout and open the doors for 0.6744 (target as per the measured move method).

On the flip side, a failed breakout or a strong rejection at the neckline resistance will likely invite selling pressure. After all, failed bullish breakouts are powerful bearish reversal signals.

Daily chart

Trend: Bullish above 0.6474

Technical levels

NZD/USD

Overview
Today last price	0.6437
Today Daily Change	0.0018
Today Daily Change %	0.25
Today daily open	0.6419

Trends
Daily SMA20	0.6393
Daily SMA50	0.6356
Daily SMA100	0.6417
Daily SMA200	0.6549

Levels
Previous Daily High	0.6439
Previous Daily Low	0.6409
Previous Weekly High	0.6439
Previous Weekly Low	0.6394
Previous Monthly High	0.6466
Previous Monthly Low	0.6321
Daily Fibonacci 38.2%	0.6428
Daily Fibonacci 61.8%	0.642
Daily Pivot Point S1	0.6405
Daily Pivot Point S2	0.6392
Daily Pivot Point S3	0.6375
Daily Pivot Point R1	0.6435
Daily Pivot Point R2	0.6452
Daily Pivot Point R3	0.6465

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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