Did the NZDUSD reverse as predicted?
We previously raised the question, “is the NZDUSD showing signs of a reversal with the formation of a head & shoulders pattern?” but what was the outcome..
On Tuesday the 18th of September, we spotted the formation of this pattern and predicted the reversal of the NZDUSD.
“Although a retest of the neckline is a possibility, a stop loss has been placed beyond the 0.658-0.657 zone. if the neckline retest fails, we can expect a rally in the upward direction and a complete change in direction as expected.”
Lets take a look at the outcome…
A breakout, followed by a retest which subsequently failed, causing a rally of around 100 pips to the upside. This can be taken as a confirmation of the effectiveness of the head & shoulders pattern.