Ay Caramba! Is AUDUSD in for a fall? Now I don’t know about you, but those higher tops and higher bottoms are looking a lot like a rising wedge to me. Stochastics also tells me that the pair is overbought, but it’s been in there for a while, so it’s still a waiting game. Hmm, I got a hunch that it would be a good time to sell if the pair breaks the psychological .9000 mark.
Unless my eyes are deceiving me, that looks like a sketchy head and shoulders formation on EURGBP’s 4-hour chart. This chart pattern suggests that a downtrend could be waiting in the wings. EURGBP already broke below the neckline of the formation and dipped to a low of .8254 before pulling up. With the stochastics still crawling higher, upward price action could take place in the short-term. If the pair finds resistance at the 50% Fib, which lines up with the broken neckline, it might be in for a stronger drop.
I’m seeing double! – A double top, that is. Those two peaks are looking pretty sweet for a drop, especially if it breaks below the neckline around 134.00. Then again, the pair could also be forming an ascending triangle with those higher lows. If the double top continues to form, the 38% Fib at 135.00 might provide some short-term support for the pair.