On pair EURAUD few days ago we had on H1 chart a small Head & Shoulders formation which finally moved the pair down from neckline level ca 160 pips. Than we had a rebound back to the neckline and now we can observe creation of a new H&S formation well seen on H4 chart.

If the neckline ( green zone) will be broken we can consider Sell , but even better would be to wait until retesting the neckline zone from the bottom to confirm bearish scenario.

In case the neckline will be enough strong and price will not break it but will rebound over the right shoulder > 1,4055 -than this setup becomes invalid.

EURAUD H4 – a H&S pattern is forming but is still incomplete

 

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