AUD/USD – Retest of the wedge breakout
|Technical
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.
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. Price action has been mixed for the last 6 weeks.
Daily: Broken out of the wedge formation to the downside. Reverse trend line resistance is seen at 0.7172. Bespoke resistance is located at 0.7158-63. With the intraday chart close to an exhaustion count, we look for rallies to be limited. The wedge has a measured move target of 0.6995.
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Action: We look to Sell at 0.7158
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Stop: 0.7210
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Targets: 0.7000
AUD/USD Current Trading Positions
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