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Forex Dreamers

On H4 a “Head & Shoulders” pattern is formed

AUD / USD overview from April 22, 2021


AUD / USD is showing a slight decline on Thursday and is currently trading at 0.7742.

The statistics published yesterday confirmed the stable recovery of the Australian economy and supported the national currency. The preliminary report on retail sales in March showed an increase of 1.4%, which was the best dynamic since November last year. The index of leading economic indicators rose by 0.4%. The Reserve Bank of Australia raised its business confidence index for the quarter to 17 points this morning.

Yesterday’s speech by Joe Biden was devoted to the topic of vaccination. The President noted that over the 92 days of his rule, about 200 million doses of drugs against COVID were released, and the rate of vaccination of the population at this stage is ahead of the planned ones. In addition, Joe Biden suggested that employers compensate employees for the time spent on vaccinations.

Also read  Positive economic statistics from the United States may put pressure on the dollar

The US dollar index is trading around 91.100.

On the H4 chart, AUD / USD is forming a head and shoulders-like pattern. The main forex indicators do not give unambiguous signals.

audusd_h4
audusd_h4

If the growth continues, we are waiting for the consolidation above 0.7761 and after that we enter buy with a take profit of 0.7816. We place our stop loss at 0.7730.

The development of a downward movement with the development of the head and shoulders pattern will be indicated by the consolidation below 0.7704. Here we form short positions in the direction of 0.7630. Set the stop loss at 0.7750.

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