AUDUSD has formed a really interesting setup since yesterday. After recovering, it has started to form a double bottom reversal. Coupled with the bullish exit of our descending resistance-turned-support line, this gives us a nicely setup double bottom reversal. Our 1st support remains at 0.7891 (Fibonacci retracement, horizontal overlap support) where a strong rally could occur. Our first level of resistance is at 0.7944 (Fibonacci retracement, horizontal swing high resistance, double bottom exit potential) and our next major level of resistance is at 0.7977 (Fibonacci retracement, horizontal breakout level).
RSI (34) has made a bullish exit of our long term descending resistance-turned-support line signaling that a bullish exit could be expected.
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RSI (34) has made a bullish exit of our long term descending resistance-turned-support line signaling that a bullish exit could be expected.
Trading CFDs on margin carries high risk.
Losses can exceed the initial investment so please ensure you fully understand the risks.
This analysis is provided as general market commentary and does not constitute investment advice. Past performance is not indicative of future results