EURAUD: Australian Job Data Could Trigger Key Movement in Head and Shoulders Pattern

Today’s job data from Australia could play a pivotal role in shaping the market, especially as the Australian dollar (AUD) strengthens. This movement adds a crucial element to the ongoing situation on the chart, where we can see a prominent head and shoulders pattern, clearly marked with yellow rectangles. Today’s decline forms the right shoulder of this pattern, and the price is currently moving lower, heading toward the red neckline.

It seems almost inevitable that the price will reach this neckline. What happens next will be crucial. A bearish breakout below the neckline would trigger a significant sell signal, suggesting further downside. Conversely, if the price reverses and rises above today’s highs, it would invalidate the bearish scenario, signaling a potential buy opportunity instead. However, given the current market dynamics, a drop seems more likely at this point.

Source: https://www.axiory.com/analytics/technical-analysis/euraud-australian-job-data-could-trigger-key-movem