OANDA:AUDNZD Australian Dollar / New Zealand Dollar
Hello traders. On this 1H analysis of AUDNZD , we have the potential of an Inverse Head & Shoulder (I-H&S) pattern forming at the bottom of a downtrend. The Left Shoulder (LS), Head (H) and the Right Shoulder ( RS ) have already been formed and we are now awaiting a break of the Ascending Neckline ( ANL ) shown by the yellow dotted line. A good entry reason for this long position would be a break and close above this neckline. The projected level for this setup is in the 1.04100 region.
Trade closed: target reached: This long position could have also be traded as a double bottom setup on the 4H TF. This was a rather conservative setup. The next resistance level is at 1.04700
Comment: One important thing to note is that it is very important where your SL is placed. If it was placed directly below our support level, you would have been stopped out. There are many factors that can influence where you put you SL and even your TP, including the nature of the currency pair that is being traded. Be sure to research these factors.