AUDUSD The Long and Short
- Aussie nearing make or break point
- Inverse Head-and-shoulders vs. Bear Flag
- Support/Resistance at 8000/8300
Aussie is attempting to put in a short-term bottom above the all-important 8000 level by carving out a potential inverse head-and-shoulders pattern. It is currently trading at the neckline of this formation with a 4-month trend-line lying just overhead. If it can clear these levels over 8300, then it has a shot at moving up towards 8500. However, if it stays contained below this level, the risk for this reversal pattern becoming a continuation pattern in the form of a bear flag increases significantly. The plan for now, sit tight and watch for either a clean break above 8300 or a bear flag with bearish implications to mature in coming days.
AUDUSD 4-hr: Sep ’14 – Jan ‘15
--- Written by Paul Robinson, DailyFX Research
To contact Paul, email him at firstname.lastname@example.org
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.