Possible Inverse Head and Shoulders on the Kiwi

Happy Friday Traders!

I’ve been watching this chart for a while now and it looks as if we’re soon approaching decision time for NZD/USD.

As shown on the daily chart below, the Kiwi / US pair is displaying a potential Inverse Head & Shoulders continuation pattern that has been developing over the past 6 months. Not only does this signify that the correction could be coming to end, but it presents a potential opportunity for significant upside gains.


A sustained break from the neckline resistance at approximately 0.7435 would confirm the breakout and potentially offer a trade with an upside target area of around 0.8000.

Generally speaking, there are a couple of ways a trader could play this setup – by buying a solid breakout of the neckline, or buying the potential re-test of the breakout area.

I’m keeping an eye on this and remain on the sidelines until I see confirmation of the Inverse H&S pattern on the Kiwi.

Enjoy the weekend, traders.

Austen P – Vantage FX

Risk Disclosure: In addition to the website disclaimer below, the material on this page prepared by Vantage FX Pty Ltd does not contain a record of our prices or solicitation to trade. All opinions, news, research, tools, prices or other information is provided as general market commentary and marketing communication – not as investment advice. Consequently, any person acting on it does so entirely at their own risk. The expert writers express their personal opinions and will not assume any responsibility whatsoever for the forex trading account of the reader. We always aim for maximum accuracy and timeliness, and Vantage FX shall not be liable for any loss or damage, consequential or otherwise, which may arise from the use or reliance on this service and its content, inaccurate information or typos. No representation is being made that any results discussed within the report will be achieved, and past performance is not indicative of future performance.

Source: Vantage FX Blog