AUDUSD – Ending wedge highlights bullish bias
|Technical
USD Index (DXY): Broken through trend line resistance at 0.9561. However, the index is stalling at the 50% pullback level of 96.00 (from 103.82 – 88.25).
Monthly: Holding within a large Expanding Wedge formation that has an eventual bias to break to the downside. The whole move higher from the 2016 low (0.6827) has been and volatile, common in corrective formations. Trend line support is located at 0.7200.
Weekly: The mixed and volatile price action formed an Ending Wedge pattern (118 weeks of mixed results). We broke the trend of higher lows on week 23rd April. Reverse trend line resistance has been rested at 0.7675. For 8 weeks the pair has consolidated close to the 61.8% pullback level of 0.7327 (from 0.6827-0.8136). Bespoke resistance is located at 0.7613.
Daily: Holding within a bullish Ending Wedge formation. Trend line support is located at 0.7235. A break of resistance at 0.7500 and the formation has a measured move target of 0.7800.
Action:
We look to Buy at 0.7250
Stop: 0.7180
Targets: 0.7600 and 0.7800
Article produced by Pia First for Orbex Limited
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