FX.co ★ AUD/NZD potential head and shoulders reversal, turn bearish

The price is forming a potential head and shoulders pattern which is a very strong reversal one. We anticipate this by selling at 1.0550 (start of second shoulder) for a reversal down to neckline support at 1.0475.

Stochastics (21,3,3) is also approaching a key level of resistance at 90% where we expect price to react from.

Sell below 1.0550. Place stop loss at 1.0600 and take profit at 1.0475.