AUD/USD - Rising Wedge - Trade the Break

The idea is to trade the break of the rising wedge. Can be both ways as the wedges can play out both as the continuation or reversal patterns. But I think that the higher risk is on the upside as the pair is trading in a down-channel since November 2017 and the retest of the downtrend line is highly likely. Furthermore, on the daily chart, we can see that STCh gave a buy signal, which previously resulted in the upside movement. When looking on the 1h chart, the AUD/USD pair is in a strong short-term uptrend even on the RSI indicator A 20-50 day EMA cross can be considered as another confirmation.

But, as previously noted am going to trade the break of the wedge either way, with SL and TP as represented on the charts. If we gonna get a break-down the second profit target can be the previous support level around 0.705. For additional confirmation, a 1h time filter can be applied. For the pattern to be valid the break should occur in the next 8 hours!

Try to keep it simple with no advanced technical analyses as for me simple patterns work pretty well.

Wish all a great trading day and subscribe if you like my ideas!