# Head and Shoulders on AUD/CAD (May 16, 2014)

Source: https://www.tradersway.com/resources/market-info/head-and-shoulders-on-aud-cad-may-16-2014/
Language: en
Updated: 2014-05-16

A reversal chart pattern can be seen on the 4-hour time frame of AUD/CAD, indicating that the pair’s climb may be cut short and may soon reverse. The heand and shoulders formation has a neckline around the 1.0150 minor psychological support, which the pair is testing at the moment.



Stochastic is moving up from the oversold area, indicating a potential bounce. However, a strong break below the neckline could mean a 200-pip selloff, which is the same height as the chart pattern.



![Head and Shoulders on AUD/CAD (May 16, 2014)]



Shorting below the 1.0150 handle and aiming for roughly 150 pips, which would be until parity, could yield a 3:1 return on risk with a 50-pip stop.



*By Kate Curtis from Trader’s Way*