AUDUSD- CHANNEL PATTERN ON LOWER TIME FRAMES
We predicted a bullish move from the Weekly 127% and support. Economic factors contributed to the strong rise in this pair after Tokyo closed. The RBA announced it will keep the cash rate the same 1.5%.
Price is now falling from the top of the channel. After a decline of 328pips in 14 days we can expect some retracement or mean reversion.
The daily chart may be forming a parallel channel and my bias is that we will see a bullish break- out in the next few days taking us back to 0.7500 level and this happens to be the 50% retracement of the major decline.
I would like to see price come back to test the bottom of the channel at 0.7300 -0.7315 before I take a long position. Or I will wait for price to close above the channel on the daily then take the retest of this area.
Price is now falling from the top of the channel. After a decline of 328pips in 14 days we can expect some retracement or mean reversion.
The daily chart may be forming a parallel channel and my bias is that we will see a bullish break- out in the next few days taking us back to 0.7500 level and this happens to be the 50% retracement of the major decline.
I would like to see price come back to test the bottom of the channel at 0.7300 -0.7315 before I take a long position. Or I will wait for price to close above the channel on the daily then take the retest of this area.