Last technical piece of this week is about the AUDNZD. It looks like this pair is ready for a stronger movement after being stuck in the sideways trend since the middle of August.
What is happening here is that the AUDNZD drew a beautiful head and shoulders pattern (yellow rectangles), which is a bearish formation ending the uptrend started in April. The pattern is already active as few days ago, we broke the neckline (black) of this formation. In addition to that, day later, the price managed to break the long-term up trendline (blue). Combination of those two factors is definitely bearish. But wait, there is more! Yesterday, the price managed to test the broken neckline as a closest resistance and that test was positive for sellers, nice!
Today, traders are respecting this bearish pattern. We are under the influence of the shooting star candle from yesterday. Our outlook on this instrument is negative and we see this pair much lower in the nearest future.