Forex Trading Library

AUDUSD – Buying dips after the AB-CD correction

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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. We posted a bullish Hammer for the month of January. Reverse trend line resistance is located at 0.7270. A Double Bottom formation could be confirmed on a break of 0.8136

Weekly: Broke the wedge formation to the downside and reached the measured move target of 0.6827. A bearish Elliott Wave count now looks to be complete with a move to the 261.8% extension of 0.6836. Strong buying pressure has resulted in a bullish Outside Week being posted.

Daily: Mixed trading. Can be seen in three-waves, common in corrective formations. An AB=CD formation would take the pair to 0.6970. The 61.8% pullback level is located at 0.6955. This could then form a bullish reverse Head and Shoulders pattern. A subsequent break of 0.7245 and the measured move target would be 0.7760

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