Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
News

Aussie Dollar at Head and Shoulders Neckline

CMC Markets

If you draw a trend line across the peaks of 24 July and 19 August on the daily chart you can see it forms the neck line of an upside down head and shoulder pattern The last 3 lows form a head and shoulder with the middle one (the head) being below the 2 shoulders. Although in this case the left "shoulder" is lower than the right one, the basic pattern suggests choppy, low momentum behavior that often comes before a change in trend. A clear break above the neck line would usually be seen by technical analysts as a potentially bullish sign. However, many would want to see price get well above the neck line to cut down the risk of a false break.


Disclaimer: CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.