The AUDUSD dropped lower towards 0.7087 levels yesterday before finding support. The Aussie seems to be carving out an engulfing bullish pattern at this point in writing on the 4H chart presented here, indicating a potential bullish reversal. Please note that the above bullish signal is forming at a convergence point of the following support levels: 1. Prices are bouncing from the backside of the resistance turned support turned line as shown on the chart. 2. Fibonacci 0.786 support is also seen passing through the same levels. 3. It could be potential right shoulder of an inverted head and shoulder reversal. With all the above convergence levels, a strong possibility remains for a bullish reaction around current price action. A safe trading strategy is to remain long, with a stop below 0.7020 levels and potential targets towards 0.7500/50 levels.
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Disclaimer:
This written/visual material is comprised of personal opinions and ideas. The content should not be construed as containing any type of investment advice and/or a solicitation for any transactions. It does not imply an obligation to purchase investment services, nor does it guarantee or predict future performance. FXTM, its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available and assume no liability for any loss arising from any investment based on the same.