AUD/USD - Short

• 
  

This is a perfect setup of for chart patterns! Left shoulder, head and right shoulder has formed price has dropped to the neckline. Price may break through neckline or bounce off as a correction then break through. Resistance is found @0.71750 whereas Support is located @0.70179 which is also found at the 50.0 fib level. This validates the neckline of the head and shoulder set up. Price may break through upon contact if momentum is strong enough. Although, it is likely that price will form correction wave and bounce off the 50.0 fib level before breaking through.

My Fibonacci indicator shows price has recently passed the 61.8 level & is sitting on the pivot point of the 50.0 level. As I said, if we are in a correction wave price will bounce off this level and eventually will be broken.

Ichimoku indicator shows price has penetrated through the kumo cloud, which shows a bearish reversal sentiment on the pair. The chikou span is below price as, which also shows bearish momentum in the market.

On the fundamental side, as of 06/03/19 The Bank of Canada decided to⁣ keep its initial interest rate of 1.75% for the 6th consecutive time from October 2018⁣.