AUDUSD – Buying Dips close to the Marabuzo

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. However, nearly all this month’s initial losses are being bought into. A false breakout?

Weekly: Broke the wedge formation to the downside. Levels close to the 78.6% pullback level of 0.7104 (from 0.6823-0.8132) have found buyers. The wedge formation has a measured move target of 0.6827. This week’s price action is likely to form a bullish engulfing weekly formation.

Daily: Four days of net gains. The rally has stalled near the previous swing high of 0.7235. The Marabuzo level from the 12 th September is seen at 0.7143. This is close to the current trend line support at 0.7138. Although signals are far from strong, buying a dip at this zone, with a measured move of 0.7360, offers good risk/reward

Action:

We look to Buy at 0.7145

Stop: 0.7100

Targets: 0.7360 and 7450

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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