Fan Yang
All posts from Fan Yang
Fan Yang in Fan Yang,

AUD/USD Attempting a Double Bottom

The AUD/USD has been trading sideways since late September, though it did edge out a new low on the year at 0.8627 in October. The 4H chart shows the market shifting from a bearish trend to a sideways consolidation, which involved a bullish correction swing up to almost 0.89. 

AUD 4H Chart 10/13

(click to enlarge)

Price Bottom Scenario:
This week, we are starting with a failure to breach that 0.8642 low, and price is returning above the 50-, and 100-period SMAs in the 4H chart.

A key level will be in the 0.8825-0.8830 area. If price holds below this area, the bearish outlook remains. It would show that the push to 0.89 was a clear-out, which suggests bearish continuation. 

Resistance Levels:
A break above 0.8830 however puts pressure on the 0.89 pivot, and also suggests a double bottom. A break above 0.89 would finally put in a price bottom and open up the 0.8990-0.90 area, then the 0.91-0.9113 area.