Looking at the AUD/USD

There is some focus on the head and shoulders pattern on the daily chart, with the neckline coming in at $0.7620. Although this is currently around 100 pips below the current spot price it is still worth keeping on the radar.

Source: Bloomberg

With momentum falling, the pair's neckline could be tested shortly and a close below here could see the pair target $0.7100. The fact the left shoulder is higher than the right also gives the pattern increased credibility.

I would look to initiate shorts on a close below the neckline and add to the positions on a subsequent close below the 2 April low of $0.7532.

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