Facts:
The pair bounced off the key resistance area near 0.6260
Mid – term trend remains downward
Head and shoulders formation can be spotted on the chart
Recommendation:
Trade: Short position on AUDUSD at market price
Target: 0.6200, 0.6138
Stop: 0.6280
Opinion: Looking at AUDUSD on the H4 interval, one can spot head and shoulders pattern, which often heralds a downward move. The price broke below the neckline of the aforementioned formation, signalling that sellers are in advantage. In addition tfollwing pull back, theprice bounced off the upper limit of 1:1 structure, which according to the Overbalance methodology confirms downward sentiment. Moreover, AUDUSD sits below the 100 – period moving average, which further supports the bearish scenario.We recommend going short AUDUSD at market price with a two targets: 0.6200 and 0.6138. We also recommend placing a stop loss order at 0.6280. Source: xStation5
