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16.10.202014:26 NZDUSD head and shoulders pattern still active but action should come next week

Company does not offer investment advice and the analysis performed does not guarantee results.
The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

At the end of the week NZDUSD remains near the highs of the right hand shoulder in the possible head and shoulders pattern we identified a few days ago. We remain bearish as long as price is below the key resistance at 0.67.

Exchange Rates 16.10.2020 analysis

Red rectangle -resistance

Horizontal Blue line -neckline support

Black lines - head and shoulders pattern

Blue vertical line -target size of drop if pattern activated

The chances of this pattern playing out are high. However as we previously said, this bearish pattern is only activated once price breaks below the horizontal support trend line. So bears need to break below 0.65. As long as price remains above 0.65 bulls have hopes of challenging the 0.68-0.69 area.

Performed by Alexandros Yfantis
Analytical expert of InstaForex
© 2007-2020

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