- The daily chart shows an inverse head-and-shoulders pattern,
- A break above the neckline resistance is needed to confirm a bullish breakout.
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
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Trend: Bullish above 0.6474
Technical levels
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