AUD/USD – The Pair Giving Bearish Signals With Head and Shoulder Pattern

My FX List
March 13, 2023
216 Views
signals

Table of Contents

Bearish View

  • Take Profit: 0.6400
  • Stop Loss : 0.6800
  • Timeline: 1-2 days

Bullish View

  • Buy Stop : 0.6680
  • Take Profit: 0.6750
  • Stop Loss : 0.6600

On the daily charts, the AUD/USD pair price was giving a typical bearish signal by forming a head and shoulders pattern. The pair also moved beneath the Fibonacci retracement level at 38.2% and a bearish crossover was made by the 25-day and 50-day MAs. So, the most probable outcome for this week would be a bearish breakdown which can be a good opportunity to trade in the bearish outlook. At the moment, the pair is being traded at the lowest price level close to what we saw in November last year.

Looking at the fundamentals, the drop was mainly caused by the strong risk-off sentiment which also led to the DXY unlocking new highs in the past few weeks. The US job numbers published last Friday added to the downtrend. The next thing to look forward to would be the consumer inflation data of the US but as per economists the data will likely reveal the high inflation sustaining. In that case, we can also expect another rate hike from the Fed. For AUD, the upcoming employment data plus the consumer and business confidence data can be significant as it will reveal more about the state of the Australian economy.

Author My FX List