Noticed quite some debate on Technician's chart on AUDUSD. So here's my take on the Aussie.
Price in an extended downtrend for sure, but recent price action has been turning bullish. Price broke the down sloping TL retested it and pushing higher. I plot my TL's using line chart (connecting only closing prices, which gives a better respecting TL's). Right side chart is candlesticks.
Yesterday's price rejection says something. Today's Yuan is weak but Aussie seems to be shrugging it off.
NOTES:
An inverted H&S seems to be forming (not confirmed yet)
The Inv. H&S Neckline also is a double top. So this MUST be broken for price to push any higher.
The upside target falls within the S/R zone.
How to play this?
1. Ahead of US GDP data, better to stay away from this pair
2. Tomorrow (WEEKEND) China PMI data is due. Expect some gaps....
3. Long on breakout of neckline (with additional confirmation of bullish candlestick patterns)
4. Target 9314 region and look for shorts based on rejection candlestick patterns in the zone of 9314 - 9435.
Price in an extended downtrend for sure, but recent price action has been turning bullish. Price broke the down sloping TL retested it and pushing higher. I plot my TL's using line chart (connecting only closing prices, which gives a better respecting TL's). Right side chart is candlesticks.
Yesterday's price rejection says something. Today's Yuan is weak but Aussie seems to be shrugging it off.
NOTES:
An inverted H&S seems to be forming (not confirmed yet)
The Inv. H&S Neckline also is a double top. So this MUST be broken for price to push any higher.
The upside target falls within the S/R zone.
How to play this?
1. Ahead of US GDP data, better to stay away from this pair
2. Tomorrow (WEEKEND) China PMI data is due. Expect some gaps....
3. Long on breakout of neckline (with additional confirmation of bullish candlestick patterns)
4. Target 9314 region and look for shorts based on rejection candlestick patterns in the zone of 9314 - 9435.