AUDUSD | Perspective for the new week | Follow-up details
Since my last publication on this pair, the price moved 150pipos in our direction before the reversal began (see link below for reference purposes). The Greenback 5-months winning streak appears to have come to end. The appearance of a Double Bottom pattern coupled with the relaxation of COVID-19 restrictions in Sydney, Australia’s most populated city after a four-month lockdown appears to bring hopes for the Aussie in the coming week(s).
Tendency: Uptrend (Bullish)
Structure: Supply & Demand | Trendline | Reversal pattern (Double Bottom)
Observation: i. The visual representation of a line drawn over pivot highs revealed the momentum and prevailing direction of price action in the last 5 months.
ii. Since the beginning of the year 2021 (February to be precise), we witnessed a downward spiral in price action until the price hit a bottom around $0.71 - a level that appears to be difficult for sellers to break down.
iii. Following the test of $0.71 on the 20th of August 2021; the price found a higher low to signal the possibility of a reversal, the beginning of a potential uptrend and at the same time raise the expectation of a Double Bottom structure.
iv. The appearance of a Double Bottom pattern is an extremely strong reversal pattern that describes a change in trend and a momentum reversal from prior leading major or minor downtrend.
v. The Breakout of Bearish Trendline on the 11th of October 2021, gives more credibility to the Bullish bias as we anticipate a Breakout of Neckline @$0.74000 in the coming week(s) for confirmation details.
vi. In case a correction happens in the early hours/days of the new week, I have identified a window on the chart for buying opportunities between $0.73000 7 $0.74000 with an opportunity to add to our existing position at Breakout/Retest of Neckline... Trade consciously!😊
Trading plan: BUY confirmation with a minimum potential profit of 250 pips.
Risk/Reward: 1:4
Potential Duration: 5 to 10days
NB: This speculation might be considered to make individual decisions on the lower timeframe.
Watch this space for updates as price action is been monitored.
Risk Disclaimer:
Margin trading in the foreign exchange market (including commodity trading, CFDs, stocks etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment.
I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith.
Past performance is not necessarily indicative of future results.
Tendency: Uptrend (Bullish)
Structure: Supply & Demand | Trendline | Reversal pattern (Double Bottom)
Observation: i. The visual representation of a line drawn over pivot highs revealed the momentum and prevailing direction of price action in the last 5 months.
ii. Since the beginning of the year 2021 (February to be precise), we witnessed a downward spiral in price action until the price hit a bottom around $0.71 - a level that appears to be difficult for sellers to break down.
iii. Following the test of $0.71 on the 20th of August 2021; the price found a higher low to signal the possibility of a reversal, the beginning of a potential uptrend and at the same time raise the expectation of a Double Bottom structure.
iv. The appearance of a Double Bottom pattern is an extremely strong reversal pattern that describes a change in trend and a momentum reversal from prior leading major or minor downtrend.
v. The Breakout of Bearish Trendline on the 11th of October 2021, gives more credibility to the Bullish bias as we anticipate a Breakout of Neckline @$0.74000 in the coming week(s) for confirmation details.
vi. In case a correction happens in the early hours/days of the new week, I have identified a window on the chart for buying opportunities between $0.73000 7 $0.74000 with an opportunity to add to our existing position at Breakout/Retest of Neckline... Trade consciously!😊
Trading plan: BUY confirmation with a minimum potential profit of 250 pips.
Risk/Reward: 1:4
Potential Duration: 5 to 10days
NB: This speculation might be considered to make individual decisions on the lower timeframe.
Watch this space for updates as price action is been monitored.
Risk Disclaimer:
Margin trading in the foreign exchange market (including commodity trading, CFDs, stocks etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment.
I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith.
Past performance is not necessarily indicative of future results.
Trade smart. Trade consciously
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.