AUD/USD, forming Head & Shoulders (double top head) in Rising Wedge ( 9th December, 2022)

Attached is the chart of the pair AUD/USD , 4 hourly

Rationale : 

Technical View :

The pair has been working inside the rising wedge since October & completing the 5the wave E (given to members) will look to break the wedge downside for quick crash.

Inside the rising wedge (bearish), the most recent price action in forming potential Head & Shoulders pattern confirming the higher probability of prices go under pressure.

Looking at the Head formation in Head & Shoulders , it is representing the Double top too , increasing the chance of the pair falling.

Fundamental View:

RBA (Reserve Bank of Australia) has come to the end of rate hiking cycle by hiking 25bps in last meeting few days ago.

With falling housing market & softer data from China should pressure the pair further downside with covid situation in China still not getting resolved will pressure the pair too.

Detailed fundamentals derived from data analysis are for premium clients.

***as December is the low liquidity month, care should be taking in position sizing***

Plan : 

we look to sell the pair 0.68500-0.69500 for the targets of 0.66200-0.64500.

If some one wants to create the position in trances then start from 0.67950 till 0.68770.

Conservatives should wait for the pattern to break the neck line @ .66500 then sell for 0.64500.

Thank You,

Sanjay Galani, CMT, CFTe

Investment Director,

UMA Network Ltd.