Indeed, coming again beneath the upper line of Bollinger bands has assisted the pair to move lower once again, offering the classical probability of forming the right shoulder of the potential head and shoulders top pattern with a sloping neckline. Of course, the pattern needs longer time to be affirmed, but the structure looks impressive for short-term traders. The clue for shorts resides at 1.4515 where the middle line of Bollinger bands resides and a break below it will pave the path to the lower line near the sloping support line. The 50-Day simple moving average also should be breached with a weekly closing to affirm the downside possibility, while MACD traditional, Relative Strength Index and Vortex are in critical mode, as they need a strong leg down to give off negative signs. Trading Strategies: Traders should be patient until the EURAUD should clear 1.4515 to offer a selling opportunity with soft targets at 1.3800, while the pattern has targets below 1.30 levels if it becomes active with a break below the sloping confirmation line. However, 1.3130 represents a strong support zone as it acted as a neckline for On the other side, stop loss for any short setups should be protected by the right shoulder’s top near 1.5330. |
