AUDUSD Develops an Inverted Head and Shoulders Pattern
The price action consolidated above the 50-day MA (in green) and then broke out above the 23.6 per cent Fibonacci retracement level at 0.75508.
After the AUDUSD jumped past that crucial threshold, it also probed the 100-day MA (in blue). Presently, the bullish momentum appears to be waning just below the Distribution area (in red).
Notice that the 38.2 per cent Fibonacci at 0.76159 serves as a major resistance level. A potential reversal from this significant turning point could drive the price action back below the 23.6 per cent Fibonacci.
In turn, this could result in the establishment of an Inverted Head and Shoulders pattern, provided that the price action then rebounds from the Accumulation range (in green).
After the AUDUSD jumped past that crucial threshold, it also probed the 100-day MA (in blue). Presently, the bullish momentum appears to be waning just below the Distribution area (in red).
Notice that the 38.2 per cent Fibonacci at 0.76159 serves as a major resistance level. A potential reversal from this significant turning point could drive the price action back below the 23.6 per cent Fibonacci.
In turn, this could result in the establishment of an Inverted Head and Shoulders pattern, provided that the price action then rebounds from the Accumulation range (in green).
