Selling AUDUSD down to 0.6460 if reversal pattern completes

The AUDUSD currency pair is building a pattern similar to the head and shoulders on the hourly timeframe. The support zone around 0.6480 serves as the bottom of the figure. The pattern formation will be complete if the pair touches this level one more time, likely followed by a breakdown. It is better to avoid entering the market before quotes test the bottom of the figure for the third time. Currently, there is a risk that AUDUSD could climb further to the resistance level at 0.6540 before reversing downward. If the price breaks above this threshold, the buy signal will be invalidated.

According to the base scenario, AUDUSD will fall below 0.6480 and target 0.6460.

Fundamentally, this week is likely to be quiet for the Australian dollar, as there are few major economic events in the near term. However, New Zealand—Australia’s closest neighbor—has several important releases in the coming days. Since their economies and exchange rates are closely linked, any momentum in the New Zealand dollar could pull the Australian counterpart along with it. Additionally, the US currency may trigger increased volatility in AUDUSD.

The overall recommendation is to sell AUDUSD when the pair declines to the 0,6480 level. Profits should be taken at 0.6460. Stop Loss could be set at 0.6515.

The volume of the open position should be calculated so that the potential loss (protected by a Stop Loss order) does not exceed 1% of your deposit. If your account balance does not allow opening a position of this size, it is better to avoid entering the market on this signal and wait for other trade options that meet low-risk criteria.