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. 

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