Looking to commerce the comdolls at the moment?
Take a take a look at these potential reversal setups able to play out on AUD/USD and NZD/USD.
I’m seeing an inverted head and shoulders and a double backside on these charts:
AUD/USD 1-hour Forex Chart by TradingView
First up is that this sketchy double backside on the hourly chart of AUD/USD.
The pair made a few failed makes an attempt to interrupt via the .6550-.6600 area and is now on its method to take a look at the reversal formation’s neckline.
A break larger may verify that an uptrend of the identical peak because the chart sample is about to comply with, however the resistance space is perhaps a tricky one to crack.
After all, this barrier strains up with a former assist area on the .6700 main psychological mark, so Aussie bears would possibly step as much as defend the ceiling. If so, one other transfer again to the lows may happen.
Also, Stochastic is inching nearer to the overbought area as soon as extra, suggesting that consumers might be exhausted and that sellers may take over from right here.
Just word that the 100 SMA just lately crossed above the 200 SMA to sign that the percentages are handing over favor of Aussie bulls. Better maintain your eyes peeled for candlestick patterns on the space of curiosity then!
NZD/USD 4-hour Forex Chart by TradingView
Next up is that this neat inverse head and shoulders on the 4-hour chart of NZD/USD, with the pair additionally gearing as much as textual content the neckline quickly.
A bullish breakout may verify {that a} rally of the identical peak because the chart formation is underway. That’d be not less than 150 pips yo!
Technical indicators are giving blended alerts, although. Stochastic has loads of room to go north, so value may maintain following go well with whereas bullish momentum is in play.
However, shifting averages are reflecting the presence of bearish vibes, because the 100 SMA continues to be under the 200 SMA.
Also, the 200 SMA dynamic resistance is close to the neckline resistance on the .6250 minor psychological mark, including to its power as a ceiling.
If resistance retains holding, NZD/USD would possibly retreat to the lows round .6100 to .6150 once more.
