EUR/AUD: 1-hour
Watch out for a potential reversal, fellas! EUR/AUD is creating a head and shoulders pattern on its 4-hour forex time frame, indicating that the recent climb is already over. The pair has yet to break below the neckline of the formation around the 1.4200-1.4250 levels before confirming the potential selloff. If that happens, EUR/AUD could fall by as much as 400 pips, which is the same height as the chart pattern. However, stochastic has just reached the oversold zone, suggesting that euro bears are feeling exhausted. Just make sure you review our lesson on How to Trade Chart Patterns if you’re thinking of shorting!
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