All trading involves risk. Losses can exceed deposits.

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.

All trading involves risk. Losses can exceed deposits.
AUD/USD
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.

Click to enlarge

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.