A perfect Head Shoulder pattern has been formed in the currency pair, we are just waiting for the pair to close below the neckline once the pair is able to close below the neckline we can expect selling coming in the index.

The Head and Shoulder Pattern is one of the best performing pattern, only entry in the pattern can be taken when the pair closes below the underling, entering before the breakout can lead to losing money as if the security take a support at the underlying and move upside we can see a descending triangle breakout and the descending triangle breakout on the upside has a very good success rate. So waiting for the breakout would be the best option.

Advice : Sell only if the pair closes below the neckline.

AUD/NZD

Oct 31 2021