AUD/USD – Buying dips at the 0.7000 Big Figure

Ian Coleman FXStreet

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 are likely to post 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, positive for short-term price action.

Intraday (4-hours) – Has the first wave higher now completed? We look to but into dips. Bespoke support is seen at 0.7000. This is just inside of the current 50% pullback level of 0.6990 (from 0.6748-0.7233).

Action:

We look to Buy at 0.7000

Stop: 0.6850

Targets: 0.7370 and 0.7830

Article produced by Pia First for Orbex Limited
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Author

Ian Coleman

FXStreet

Ian started his financial career at the age of 18 working as a Junior Swiss Broker at Godsell Astley and Pearce (London). He quickly moved through the ranks and was Desk Manager at RP Martins at the age of 29.

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