AUD/USD negative head and shoulders pattern continued to dominate with accelerated moves to the downside exactly as predicted. Last week worked perfectly with losses every day as forecast & 9080 worked perfectly as resistance on Friday. All week we have warned the measured target for this head & shoulders pattern could be 8980!!! Today we have hit 8998 so far!!! If you followed us and ran shorts it is now time to for profit taking & a buying opportunity at 8990/80. Exit shorts & try longs with stops below 8960. Be aware that a break lower would then see 8980/90 acting as resistance for a move towards 8930/25 then 8905/00.
If we manage to hold on to strong support at 8980/90 a bounce from here should target 9030. A high for the day possible with sideways action likely for a day or two before a recovery. However if the pair continue higher look for 9045/50. Any shorts here need stops above 9060 for a move towards a selling opportunity at 9080/90.