NZDCAD - Head and Shoulders Pattern

There is a nice Head and Shoulders Pattern setting up here on NZDCAD. There would be a nice location for stops right above the left shoulder and on the right shoulder retest we have a Double Top setting up as well with Bearish Divergence. If you want to wait for a confirmation you can wait for the neckline to break and then get involved on a retest and pullback. Depending on how aggressive you are with targets you can get a very good risk reward on this one with either a retest of the neck level or shooting lower. If you are looking for targets at the lower level of structure we have a 1.618 Fibonacci extension from the Head to the Neck which gives us confluence at this target location.

-Raymond Jeffries

Comment:

Target 1s hit on this one and if you are expecting a move to that lower level you could move your stops to breakeven to take risk off the table and make this a risk free trade.