The Australian dollar had a rally going against the New Zealand dollar from July 8 through July 19. AUD/NZD has been consolidating in a kind of a double top pattern since then. The pattern is completed only when the right top’s slope reaches the neckline, but it is already time to set up a pending stop order in preparation for the breakout.
The chart below shows the double top pattern delimited with the yellow lines. The top one marks the tops, and the bottom one marks the neckline. The cyan line is my potential entry level in case of a bearish breakout. It is located at 10% of the pattern’s height below the neckline. The green line is my target — it is located at 100% of the pattern’s height below the neckline. I will set my
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