Head & Shoulder Review

Dear Dynamic Traders,

I thought I would take the opportunity to review the AUDNZD and USDJPY head and shoulder patterns I posted recently.

AUDNZD

Below is the daily chart for the AUDNZD. Price broke through the neckline and has now gone back to retest it. As we know price will not move in a straight line and a pullback is expected. Either price will continue down or go back for a re-test of the 1.29 area. If it continues down, the head and shoulder measurements can be used for good trade management and exit. If price breaks up beyond the H & S, we will have a failed H & S and filter tools may be utilised.














USDJPY

The weekly chart of the USDJPY below shows price retesting the trendline.
On the daily chart price has broken through the neckline and is challenging the trendline which may act as resistance and force price back down which may provide a good entry opportunity. Remember to consider the alternative to avoid bias as anything can happen.


























Good Trading!
Bijal Shah