Pivotal moment for AUDUSD (Hopefully Bearish)

18 mars 2016

I believe we are at a pivotal moment for the AUDUSD depending on the next 1 or 2 candles. The yellow line above was a major support level in the past for the head and shoulders pattern and was also validated a few more times after that before break at the neckline. If price stays above this neckline in the next couple of candles, I predict the AUDUSD will consolidate around this area or head up, using it as support. BUT if next candles are bearish and below this support line than I feel confident in shorting the AUDUSD with stop lost at 0.7734, target one 0.74005, and target 2 at 0.73043. Support level should turn into resistance, creating a good risk vs. reward.