AUD/NZD Price Analysis: Teasing inverse head-and-shoulders breakout

• AUD/NZD has carved out an inverse head-and-shoulders (H&S) pattern on the weekly chart. 
• A breakout looks likely as the pair is trading well above the H&S neckline hurdle.

AUD/NZD is currently trading at 1.0921, the highest level since October 2018. 

A close above 1.0887 on Friday would confirm an inverse head-and-shoulders breakout on the weekly chart. That would imply a reversal higher from the nine-year-long bear market, which began at highs near 1.3795 seen in 2011. 

A breakout, if confirmed, would expose the major hurdle lined up at 1.1175 (Aug 2018 high). 

Bigger gains, however, may not happen immediately as the 14-day relative strength index is reporting extreme overbought conditions. As such, the pair may consolidate or revisit the neckline support (former resistance) at 1.0877 before capitalizing on the bullish breakout. 

Weekly chart

Trend: Bullish

Technical levels