NZD/USD Technical Analysis: Teasing inverse head-and-shoulders breakout

NZD/USD has carved out an inverse head-and-shoulders pattern on the daily chart.
The key indicator suggests scope for a rise to the 100-day moving average.
A close above 0.6433 is needed to confirm a bullish breakout.

Omkar Godbole FXStreet Contributor

NZD/USD is looking north with the daily chart teasing an inverse head-and-shoulders breakout – a bullish reversal pattern.

The pair is currently trading just above the neckline resistance of 0.6433 with the relative strength index (RSI) signaling a bullish bias with an above-50 print.

The Kiwi, therefore, looks set to test the 100-day average lined up at 0.6463.

A close above 0.6433 is needed to confirm an inverse head-and-shoulders breakout. That would create room for a rally to 0.6662 (target as per the measured move method).

The outlook would turn bearish if a strong rejection at 0.6433 is followed by the invalidation of higher lows via a drop below 0.6333 (Oct. 30 low).

Daily chart

Trend: Bullish

Technical Levels

NZD/USD

Overview
Today last price	0.6437
Today Daily Change	0.0010
Today Daily Change %	0.16
Today daily open	0.6427

Trends
Daily SMA20	0.6352
Daily SMA50	0.6341
Daily SMA100	0.6465
Daily SMA200	0.6593

Levels
Previous Daily High	0.6458
Previous Daily Low	0.6406
Previous Weekly High	0.6458
Previous Weekly Low	0.6333
Previous Monthly High	0.6437
Previous Monthly Low	0.6204
Daily Fibonacci 38.2%	0.6438
Daily Fibonacci 61.8%	0.6426
Daily Pivot Point S1	0.6403
Daily Pivot Point S2	0.6379
Daily Pivot Point S3	0.6351
Daily Pivot Point R1	0.6454
Daily Pivot Point R2	0.6482
Daily Pivot Point R3	0.6506

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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