Cold "Shoulder" from AUDUSD - Head & Shoulders Forming
Updated
Here I have AUD/USD on the 1Hr Chart!
Price has found quite a Support @ .64848!
Not only that, but we have 2 Clear Tops and price is working on a 3rd!!
If price is unable to move any HIGHER than this Resistance @ ( .65296 - .65246 ), I suspect price will move back down to the Support or "Neckline" and with that, will have completed a VERY STRONG reversal pattern called HEAD & SHOULDERS!!
Adding confluence to this idea is the Divergence forming based on the Highs on the RSI
-INVALIDATION of Pattern will be if Price Breaks and Closes ABOVE ( .65296 - .65246 )
-CONFIRMATION of Pattern will come if Price Breaks and Closes BELOW .64848
*If CONFIRMED, will be looking for Selling Opportunities!!
Price has found quite a Support @ .64848!
Not only that, but we have 2 Clear Tops and price is working on a 3rd!!
If price is unable to move any HIGHER than this Resistance @ ( .65296 - .65246 ), I suspect price will move back down to the Support or "Neckline" and with that, will have completed a VERY STRONG reversal pattern called HEAD & SHOULDERS!!
Adding confluence to this idea is the Divergence forming based on the Highs on the RSI
-INVALIDATION of Pattern will be if Price Breaks and Closes ABOVE ( .65296 - .65246 )
-CONFIRMATION of Pattern will come if Price Breaks and Closes BELOW .64848
*If CONFIRMED, will be looking for Selling Opportunities!!
Trade active
On the reaction at the turn of the hour, I'm convinced we will continue to see price move down so I've taken a Sell Entry @ .6520!!SL @ .6540
Comment
Fundamentally giving this idea and ultimately the DXY strength is the mass amount of mixed results coming in starting with EUR/GBP PMI's earlier this weekAND
Tonight JPY CPI came in EXTREMELY LOWER than expected ( 1.6% rather than 2.2% forecasted ), all of this together spells overall strength for the USD!
Trade closed: stop reached
SL was reached! The Head & Shoulders setup was invalidated by price rising above what was to be believed to be the "Head" or Second High
Comment
Upon further analysis, price created a New High but ended the week giving back most the gains.Friday's PCE numbers came in HOTTER than expected, giving the DXY the potential strength it needs!
If Price decides to break back down below the Resistance Zone, I'll remain Bearish on the pair and look for Sell Opportunities!
-With our New High came a Lower High register on the RSI .. is the Divergence still intact?!
Novi_FIbonacci
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