Hello Friends,
Coming to the Point, Today We will Look at AUD/USD.
Let's have a Weekly Chart First
Let's Have a Look at this Chart, Simple and Sweet Chart shows The Pair is Breaking out of the Long Term Falling Trend. The Pair was in Bearish Trend since Last 6 years and The Fall was assisted by a Long Term Falling Trendline providing stiff resistance whenever the pair tried to rise. at Current Situation, the Pair has pierced the Trendline resistance and trading up above the trendline. Problem is, we don't have a full candle closing above the Falling Trendline.
We will Need a Candle Closing above the Trendline in Weekly Chart, But for this we are having some support from the Short Term Rising Channel as shown in the above chart at the bottom area. The Price is moving in a Rising Channel since last few Months and the pair witnessed support along the channel support and moving up.
We may find some more developments in support of the upside. Let's go to Daily Chart
This is a Line Chart on Daily timeframe, We may see a clear development of a Chart Pattern "Inverted Head and Shoulder" The Pattern is highly reliable and works out excellent if Found Near Lows and after a big Long bearish trend. We can assume a Trend Reversal with this formation.
In this case the Inverted Head and Shoulder Pattern is showing a price movement of 1000 pips above the Neckline and above the falling trendline as both are very close in this area and forming a confluence point, giving strong Resistance for the price to Push Further up. Once the pair clear the Resistance zone around 0.7670-0.7700, we will see a Fresh Bullish Momentum in this pair and a price Target of 1000 pips can be easily achieved. It may not be Possible in One Single move, It will take time and some time bound corrections to reach the targets.
We Expect The Pair will Take Good support around 0.7520 area which is a Support on the Short term rising channel and a Support line. The support is hardly 120 pips away and the upside is approx 1000 pips, which is a Great Risk Reward Ratio to enter the trade, but we advice to follow strict Risk Management and Consult your personal Trading Adviser for further guidance. If you do not follow any Investment Adviser or Trading adviser, Do not Risk your money !!
Our Recommendation in this Pair
BUY AUD/USD around 0.7680 with a Stoploss around 0.7520 and Take Profits around 0.7840 - 0.8020 - 0.8270 - 0.8580
Disclaimer :
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