FX.co ★ AUD/CHF, Head and Shoulders Bullish Reversal Pattern, December 22, 2010 (Daily Strategy)

AUD/CHF

The short graph on the Australian dollar – Swiss franc pair is beginning to hint at the beginnings of a head and shoulders pattern. All that remains for the pattern to be complete is a short upwards movement towards the pattern's neckline around 0.9590. Those among us preferring risks can enter even at the present price levels, strengthening their position after the breach of the neckline.

More conservative traders would be best to wait for a close over the 0.9600 neckline, and only then enter a buy deal with a first realization goal at 0.9700, and a second, final goal for full realization marked near the resistance level of 0.9830 Swiss francs for one Australian dollar.