Double bottom towards rate decision

FX:AUDUSD   Australian Dollar / U.S. Dollar
Last week, $AUDUSD, created double bottom near 0.7.
With the right price reaction to AUD rate decision, scheduled for this week, $AUDUSD may finally pick up some strength and breakout of its daily downtrend line.
The double bottom is the setup that may support this bullish assumption.. but we've seen plenty of double bottoms in $AUDUSD during the last year that were violated by the weakness of the Aussie... so it is a risky trade.

Several things that may indicate that this time is different:
1. We are near a Figure level - 0.7 - Psychological level that centers the attention of buyers and sellers.
2. We've seen USD folding to CAD (in USDCAD             ) and to the EUR ( bullish EURUSD             trade) last week. $DXY             also shows bearish signs- See linked ideas.
3. Price is about to close above its Fast SMA line following last week's False Break. The Fast SMA line is used to get preliminary signs of potential shift in trend.

Last week in the Elite Zone (my private members group) we already used 0.7 for an early entry. An hourly bullish pattern completion near 0.695 was our trigger (see the trade -

The R/R here is about 1:3 (final target level near 0.76 and stop loss should be below 0.69.
Initial target level, in case of a breakout, will be 0.715-0.72, previous structure support .

The final target level is set based on structure, 200 SMA line and the 61.8 Fib level.

That's it for now.. I'll update with the results later this week.

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If you are interested in Fibs, In this week's Weekly Markets Analysis I wrote a post about Fibonacci Trading (for those who aren't familiar with Fibs) - Check it out -

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Comment: Approaching final target level
0.71-0.72 is now support and potential buy zone for a continuation trade
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