AUDUSD - Bullish Head & Shoulders Hourly

AUDUSD - Bullish Head & Shoulders Hourly

The following chart shows a bullish setup occurring on the AUDUSD with a 1 hour bullish head and shoulders in the making. This type of setup would look for about a 60 pip profit target based on the height of the pattern though it will be interesting to see how price proceeds in the face of recent weakness.

The stronger than expected jobs numbers will be a help but keep an eye on resistance as we get toward the trending 50 period moving average.

Assuming the candle closes outside the pattern an initial stop below the current candle seems reasonable.