AUD/USD Price Analysis: The break into 0.6930s has summoned the bulls to target the 0.6950s

The bulls are moving in and eye the 0.6950s and prior highs.
0.69536 is a mid point from where the downside commenced in Monday's Tokyo open.

Ross J Burland FXStreet

In a variation of a Wyckoff style schematic, AUD/USD, as per the prior analysis, AUD/USD bulls seek a break of 0.6925 for 0.6950 target area, the bulls have accumulated the Aussie at a discount.

The price has broken out from within the 'consolidation' following the break of 0.6925 resistance, in a ''sign of strength'' which has encouraged the bulls. The market is making fresh highs above the resistance and the following illustrates this from prior analysis down to the recent price action on a 5-min time frame.

AUD/USD prior analysis

AUD/USD live 5-min charts

In the above schematic, the W-formation was identified and the last point of support, LPS, gave a perfect entry for the bulls seeking a discount. Below, a secondary W-formation was formed from which the price has rallied from a test of the first leg of the pattern and its resistance:

The price is taking off but there are risks of further mitigation of price imbalances until 0.6924. Should the bulls manage to stay in control from between here and there, then the upside is compelling for a test of the 0.6950s and prior highs. 0.69536 is a mid point of a prior order block from where the downside commenced in Monday's Tokyo open.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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