AUD/USD: technical analysis
28 July 2022, 11:45
| Scenario | |
|---|---|
| Timeframe | Weekly |
| Recommendation | BUY STOP |
| Entry Point | 0.7040 |
| Take Profit | 0.7191, 0.7397 |
| Stop Loss | 0.6987 |
| Key Levels | 0.6437, 0.6686, 0.6860, 0.7037, 0.7191, 0.7397 |
| Alternative scenario | |
|---|---|
| Recommendation | SELL STOP |
| Entry Point | 0.6855 |
| Take Profit | 0.6686, 0.6437 |
| Stop Loss | 0.6910 |
| Key Levels | 0.6437, 0.6686, 0.6860, 0.7037, 0.7191, 0.7397 |
AUD/USD, H4
On the four-hour chart, at 0.6860, there is the formation of the Three advancing white soldiers pattern, meaning buyers have seized the initiative and intend to restore positions. In turn, the appearance of the Three “bullish” steps pattern also signals the continuation of the upward dynamics, and the “bullish” Marubozu pattern indicates the predominance of “bullish” sentiment. In the current situation, the asset will most likely continue to recover to the resistance level of 0.7037, which will allow the quotes to head to the zone of 0.7191−0.7397. An alternative scenario is possible after the consolidation below the support level of 0.6860, and then the downward movement may intensify to 0.6437.
AUD/USD, D1
On the daily chart, a Falling wedge price pattern is being formed, from which the asset managed to break up, but its implementation has not yet been completed. The “bullish” mood for the instrument is also confirmed by a series of formed Three “bullish” steps figures, which serve as signals for the continuation of the uptrend. Most likely, the trading instrument will strengthen the upward dynamics to 0.7037, consolidation above which will become a catalyst for the movement of quotations to the area of 0.7191−0.7397.
Support and resistance
Support levels: 0.6860, 0.6686, 0.6437.
Resistance levels: 0.7037, 0.7191, 0.7397.
Trading tips
Long positions may be opened above 0.7037 with the targets at 0.7191, 0.7397. Stop loss – 0.6987. Implementation period: 7–9 days.
Short positions may be opened below 0.6860 with the targets at 0.6686, 0.6437. Stop loss – 0.6910.
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