Wednesday, August 24, 2011

AUD/USD Possible Head and Shoulders Top

The bounce from the early August lows has steadily lost momentum and now the pair looks vulnerable with an eventual bearish breakdown highly probable. 

There is a head and shoulders pattern forming at the highs on the hourly chart which if it passes below the neckline at 1.0445 could trigger a move down to 1.0360. 

Without a confirmation from the exchange rate itself, however, there is still the possibility the pair could rise further first, perhaps matching the 1.0600 highs.

Analysis prepared by:
Joaquin Monfort
Forex4you analyst