Hello traders. I hope you are all doing well. On the AUD / NZD chart we have a long-term bullish bias. But perhaps the market is stuck between monthly bands. Anyway, we have a potential head and shoulders on the daily chart. Right shoulder formation hasn’t started yet, but if it does, we can take the opportunity to enter short (you can use, for example, a short-term counter trend break as additional confirmation, and be sure the MACD doesn’t become bullish during right shoulder formation, if we get this pattern). This can also be considered a double top pattern, so again, you can use any retracement to try to enter short. This medium-term bearish mood can be considered valid until the price touches the 2nd trend line, because as you know, in theory, when we get the 1st trend line break, the price will touch the second trend line in 80% of cases. so until that happens, monitor the daily chart.
Keep in mind that the market can do what it wants, whenever it wants, so follow the rules of risk management and trade safe.
Merjem
Keep in mind that the market can do what it wants, whenever it wants, so follow the rules of risk management and trade safe.
Merjem