Inverted Head & Shoulders in Play - Low Risk Entry

FX:AUDUSD   Australian Dollar/U.S. Dollar
AUDUSD             has an Inverted Head and Shoulders in play, The RBA caused a bit off a sell off on a statement release, which provides a low risk setup to get involved in the pattern.

Risk to Reward from this Level falls just above 5:1 - with stops below the neckline.

The 1H is setting up as a doji , but has not closed as of yet.

The RBA statement was less hawkish than it previously was, but for the most part quite neutral with no clear guidance on future monetary policy adjustments

There is currently a potential Head and Shoulders in the EURAUD             , though a clear break of the Neckline is yet to be seen.

There is also a Inverse Head and Shoulders pattern in the S&P500             . The Neckline is broken, and equities are certainly bouncing in general. The AUD has shown strong positive correlation with equities as of late, the opposite of what we saw earlier this year, which was a move of Risk Aversion.

The Dollar Index             is facing some major resistance as well, USD weakness can attribute to this trade. As mentioned in a previous EURUSD             trade idea, It is unlikely the USD will break to new highs without a clear indication of when the next rate hike will occur. The FED failed to give a heads up as to this information in it's meeting last week.
A clarification - I drew this H&S on 1H and got stopped out of the trade thinking the pattern failed. I later saw on 4H the Neckline was lower and did play out as expected. The pair exceeded the targets ever so slightly and then proceeded to reverse.
please , update again
thabk so much
+1 Reply
Bearish, then bullish setup
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