I believe this head and shoulders pattern will play out. We are almost at a point where we could look for a sniper entry. This pair has been in a local uptrend for a while now but being an Australian resident, and the climate of my country (2nd wave of COVID cases spiking and shut down of borders looking to last until 2021), I feel its only a matter of time before the AUD drops. Despite the USD showing poor performance, I believe the AUD will perform worst.
Not only do we have a strong head and shoulders about to play out, we are just below a solid daily resistance level. On the 1 hour chart we are making lower lows, and lower highs indicative of a reversal. This all combined with our current price sitting nicely under the 50 MA has me convinced we will see the bears in action. Once the box under the H&S is broken I will be taking a short position, looking to target a recently established support and resistance zone. From there I will trail and stop my way to the bank.
Remember this is just my opinion, take it with a grain of salt and use proper risk management.
Please comment, like and follow so I can continue to provide helpful content.
HAPPY TRADING
-MATT
Not only do we have a strong head and shoulders about to play out, we are just below a solid daily resistance level. On the 1 hour chart we are making lower lows, and lower highs indicative of a reversal. This all combined with our current price sitting nicely under the 50 MA has me convinced we will see the bears in action. Once the box under the H&S is broken I will be taking a short position, looking to target a recently established support and resistance zone. From there I will trail and stop my way to the bank.
Remember this is just my opinion, take it with a grain of salt and use proper risk management.
Please comment, like and follow so I can continue to provide helpful content.
HAPPY TRADING
-MATT