Hello everyone! Here’s my forex pick for the day. Based on my technical analysis, the Euro against the Australian dollar (EUR/AUD) currency pair could be on the verge of a major trend reversal after 3 years of down-trending and a year of consolidation. It seems to me that it had recently broken out from a 16-month inverted head and shoulders formation when the price breached above the neckline as seen in the weekly chart posted. Also, the MACD has been smoothly sailing over the 0 line for a few months now which indicates a bullish signal. Based on the height of the mentioned chart pattern and added to the breakout point, we could set a target price of 1.4500. That’s a 1,150-pip upside from the current price of 1.3350. On the downside, a reasonable stop loss placement would be the pair’s drop below the neckline or at the 1.3160 marker, that’s a 190-pip cut from 1.3350. The risk to reward ratio for this potential trade is around 1:6. In addition, a return move at the neckline of the inverted head and shoulders would be a better entry than the current price for me.