AUDUSD Rising Wedge| Structural Resistance| Technical Target Evening Traders,
Today’s Analysis – AUDUSD – trading in a rising wedge pattern at key structural resistance, a break bearish is plausible.
Points to consider,
- Consecutive higher lows
- Strong structural resistance
- Technical target (local support)
- RSI and Stochastics lower high projection
- Volume influx needed
AUDUSD has been putting in consecutive higher lows as it trades closer to its rising wedge apex.
Structural resistance is a key trade location; a break above this will NEGATE the trade setup.
The technical target for this rising wedge is at local support, assuming price breaks down from the structural resistance zone .
The stochastics and the RSI is projected to establish a lower high if price tests structural resistance. This will put in a double bearish divergence, thus putting more emphasis on a breakdown.
There needs to be a volume influx upon a break in either direction of the rising wedge for confirmation. This will help avoid any bear and or bull traps.
Overall, in my opinion, AUDUSD is approaching a key macro structural resistance. A short trade is valid with defined risk above resistance. For confirmation, wait for the wedge to break with increasing volume .
What are your thoughts?
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And remember,
“Focus, patience, wise discernment, non-attachment —the skills you acquire in meditation and the skills you need to thrive in trading are one and the same.”
― Yvan Byeajee
