AUDUSD: A Rare “Stop & Reverse” Trading OpportunityToday, we’re taking a look at the AUDUSD, and this is one of those charts that really makes technical traders smile—because we’ve got two patterns forming at the same time that actually complement each other, rather than conflict.
On one hand, we have a potential head and shoulders top, which points toward a bearish trading opportunity if price confirms the pattern. On the other hand, we also have a potential bullish Cypher pattern, which would offer a buying opportunity if it completes as expected.
At first glance, this might sound confusing. How can a market present both a bullish and bearish setup at the same time?
Why This Setup Is So Unique
The key detail here is location. The completion point of the Cypher pattern lines up almost perfectly with the level where I’d be looking to take profits on the head and shoulders trade. In other words: If the head and shoulders plays out, that downside target becomes the exact area where the bullish Cypher would be completing. This creates a rare and powerful situation where a trader can potentially use a “Stop & Reverse” approach: Trade the head and shoulders to the downside, take profits at the Cypher completion zone, then, flip the position and trade the move back to the upside
Rather than choosing between bullish or bearish bias, the market gives us a structured plan for both scenarios, all based on price action and pattern completion.
The Big Takeaway
This is a great example of why technical analysis isn’t about predicting the market—it’s about preparing for multiple outcomes. When patterns align like this instead of asking “Which direction will price go?”, we can focus on “What will I do when price gets here?”
If you have any questions, comments, or want to share your own opinion on the AUDUSD, feel free to leave them below.
And as always, I’d really appreciate it if you hit that like button before you go.
Akil
