Potential Bullish Setup on AUDUSD: 0.690 is next? 👀
The AUD/USD pair has shown bullish momentum by breaking out of its previous range and establishing a new high. This breakout indicates strength in the upward trend. After setting this new high, the price action has entered a consolidation phase, now ranging between the new daily high and the monthly pivot point.
This consolidation is a common pattern following a significant move, as the market digests its recent gains and traders assess their next steps. The daily high, which the price has recently tested, is now acting as short-term resistance. The monthly pivot point below serves as a potential support level within this new range.
If the price maintains above the monthly pivot point and breaks past the daily high, it could suggest that the bullish trend is ready to resume, potentially leading to further gains. On the other hand, a drop below the monthly pivot might indicate a deeper retracement or a shift in market sentiment.
This consolidation is a common pattern following a significant move, as the market digests its recent gains and traders assess their next steps. The daily high, which the price has recently tested, is now acting as short-term resistance. The monthly pivot point below serves as a potential support level within this new range.
If the price maintains above the monthly pivot point and breaks past the daily high, it could suggest that the bullish trend is ready to resume, potentially leading to further gains. On the other hand, a drop below the monthly pivot might indicate a deeper retracement or a shift in market sentiment.