Forex Trading Library

AUDUSD – Buying dips near previous low

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Monthly: We have broken the large Expanding Wedge formation to the downside. The whole move higher from the 2016 low (0.6827) has been and volatile, common in corrective formations. Reverse trend line resistance is located at 0.7246

Weekly: Broke the wedge formation to the downside. The wedge formation has a measured move target of 0.6827.

Intraday (3-hours) – Completed a bullish 5-wave count (Elliott Wave) at 0.7302. This was close to the 261.8% extension level of 0.7286 (from 0.7021-0.7122). We are now assessed as being within the corrective formation lower.

Daily: No clear indication that the correction has come to an end. Previous swing low is located at 0.7085. Trend line support, and a possible right shoulder for a bullish reverse Head and Shoulders pattern, is located at 0.7066. Buying within this zone offer good risk/reward.

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