Hello traders, and welcome to our "Trade Chart Patterns Like the Pros" analysis.
Today, we're focusing on AUDUSD, which offers an exciting trading opportunity. The AUDUSD has developed an advanced harmonic pattern, the AB=CD bearish pattern, on its hourly chart.
The AB=CD pattern is one of the classic chart patterns which is repeated over and over again. The AB=CD pattern is a four-point price structure wherein the initial price segment is partially retraced and followed by an equidistant move from the completion of the pullback, and is the basic foundation for all harmonic patterns. There are several combinations and variations of the AB=CD pattern, but the primary AB=CD pattern consists of an initial leg (AB) then a retracement (BC) and then a final leg that mirrors the initial leg (CD).
Currently, the price is trading below our short entry level (EL) at 0.64972. To safeguard our position, we've placed a stop above point D at ST: 0.65254.
Target 1:
- 62% of XA: 0.64245
- 79% of XA: 0.63977
Target 2:
- 127% of XA: 0.63211
- 162% of XA: 0.62672
Stay tuned for more insights and happy trading!
