Analysis: Head & Shoulders | EUR\AUD

Submitted by ChartSecret.com on Thu, 07/16/2009 - 11:35
in

EUR\USD Head & Shoulders Chart Pattern

Potential Head & Shoulders pattern at the EUR\AUD Forex pair. Price movement will determine whether it is an Head & Shoulders pattern (marked in Green) or a reverse Cup & Handle (marked in Red). Pattern appeared at a strong Support level (1.7500) which confirms the idea of a Bottom - Reversal pattern.

Trading
If price creates another shoulder, we will enter an aggressive long right on the shoulder itself, upon confirmation from Candlesticks. Signal will be posted. Conservative traders will wait for the neckline to break and for price to pull back to the neckline.

If price does not create another shoulder and it is a Reversed Cup & Handle, we will wait for price to pull back to neckline and enter.

Target
Pattern size is 160 pips, and this size is projected from the breakout price to determine target.