Neckline
NZD/JPY - POSSIBLE SHORT ENTRYFX:NZDJPY
The rate has climbed up and is now testing the two-and-a-half-year falling trendline resistance. The current level is also the former broken neckline of a completed head and shoulders pattern back from February.
I will be looking for selling opportunities on shorter time frames, however the stops should be based above the resistance area (81.00) and possible target - the major support level around 76.00.
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POTENTIAL HEAD AND SHOULDERS ON EUR/USDFX:EURUSD
The rate has formed something of a head and shoulders pattern on the 4H chart at the long term massive triangle resistance.
I am looking for break of the two-and-a-half long rising trendline and the pattern's neckline below 1.1160 to enter new short positions.
Such a break should trigger a drop to short term target at 1.1000 with a potential move towards the medium term target around 1.0800.
A weekly close above the June highs above 1.1300 is needed to invalidate my bearish bias on the pair.