Looking to trade the comdolls today?
Take a look at these potential reversal setups ready to play out on AUD/USD and NZD/USD.
I’m seeing an inverted head and shoulders and a double bottom on these charts:
AUD/USD 1-hour Forex Chart by TradingView
First up is this sketchy double bottom on the hourly chart of AUD/USD.
The pair made a couple of failed attempts to break through the .6550-.6600 region and is now on its way to test the reversal formation’s neckline.
A break higher could confirm that an uptrend of the same height as the chart pattern is about to follow, but the resistance area might be a tough one to crack.
After all, this barrier lines up with a former support region at the .6700 major psychological mark, so Aussie bears might step up to defend the ceiling. If so, another move back to the lows could take place.
Also, Stochastic is inching closer to the overbought region once more, suggesting that buyers could be exhausted and that sellers could take over from here.
Just note that the 100 SMA recently crossed above the 200 SMA to signal that the odds are turning in favor of Aussie bulls. Better keep your eyes peeled for candlestick patterns at the area of interest then!
NZD/USD 4-hour Forex Chart by TradingView
Next up is this neat inverse head and shoulders on the 4-hour chart of NZD/USD, with the pair also gearing up to text the neckline soon.
A bullish breakout could confirm that a rally of the same height as the chart formation is underway. That’d be at least 150 pips yo!
Technical indicators are giving mixed signals, though. Stochastic has plenty of room to head north, so price could keep following suit while bullish momentum is in play.
However, moving averages are reflecting the presence of bearish vibes, as the 100 SMA is still below the 200 SMA.
Also, the 200 SMA dynamic resistance is near the neckline resistance at the .6250 minor psychological mark, adding to its strength as a ceiling.
If resistance keeps holding, NZD/USD might retreat to the lows around .6100 to .6150 again.
