Forex: AUD/USD with potential head and shoulder formation - short after breakthrough and retest

04.03.2019 / 18:03

Rating:

AUD/USD

Time frame: H4, H1

Technical analysis: The price has formed a trend-turning head and shoulder formation, and after breaking through the neckline we can position enter the market with sell position.

If we move to H1 time frame, we can see that the pair is moving in a pronounced downward trend channel, currently testing its resistance.

On 05.03.19 at 5:30 (GMT +2) there will be a statement by the Australian Bank on interest rates.

Expectations are that they will keep the current interest rates, so most of the focus will fall on the statement.

Indicators: The H4 price is below 200 and 50 EMA, indicating strong resistance to the price.

DeM - in neutral territory and does not give signals

At H1, the price is below 200 and 50 EMA, indicating strong resistance to the price.

DeM - in neutral territory and does not give signals

Aggressive Entry in Deal: Sell from current levels with stop at 0.7125

Conservative entry into a deal: Sell only after breakthrough and retest of the "neck" line

Alternative scenario: In case of a breakthrough of the short-term trend channel formed on H1, the price will continue to appreciate.

Trader Milko Zashev

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Forex: AUD/USD with potential head and shoulder formation - short after breakthrough and retest

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