The AUD/USD has a head and shoulders set up with the neckline at .9320. Right shoulder resistance is at .9440’s. With the event risk this week (CPI tonight and China HBSC PMI tomorrow) there is a good chance we either break the neckline, or stage a bullish breakout in a strong multi year downtrend (red trend line near .9500). Either way, the AUD/USD is set up to make a move in the coming week(s).

Blake Morrow

Chief Currency Strategist, Wizetrade

Disclaimer: I am short the AUD/USD for the last week near current levels.