EURAUD: Head & Shoulders at Key Resistance

A head & shoulders patterns is forming at a key resistance level where we do have previous structure and the0.618 fib retracement of previous downtrend. In addition to that a bearish divergence to the RSI shows that this upmove is losing its steam.

Selling the breakout below the necline of the pattern is a nice idea.

Kommentera:

The head & shoulders pattern didn't triggered as planned as price broke above the head's high. This doesn't changes our plans shorting this pair. Now price is testing our support level and any breakout below it will open doors for longs. The problem now is that we don't have a key structure level to hide our sl. So we should wait for the breakout and wait for a setup to complete like a bearish flag, or your favourite strategy