Lots of opportunity on the charts to start off they year! Here at Six Figure Capital, we are all taking advantage of all the opportunities!!!
Today, we are looking at AUD/USD on the 4h chart. Price seems to be trending down, and within the down trend a bullish 5-0 seems to have completed in the 0.7360 zone.
Throughout my studies of this pattern, it seems to be very common for price to hit the 0.5 mark and then flirt between the 0.5 and 0.618 before the price reversal actually hits.
Referring to @Lewglasgow analysis of this pattern, price is also hitting a trend line in the down trend of this pair.
Now, we just play the waiting game...
The measurements for a valid 5-0 pattern are detailed below. B: 1.13 - 1.618 C: 1.618 - 2.24 D: 0.50
Based on Market Profile (volumes) and Price Action there is very strong swing support at 0.7246. There was about 2 week rotation where the big players accumulated their long trades and then moved the price agressively higher. You Can see this strong trading activity even on yearly volume profile!
If the price comes back to 0.7246 I think that the agressive buyers will come again and push the price higher once more.
Here is my analysis:
If the price comes back to 0.7246 I think that the agressive buyers will come again and push the price higher once more.
Here is my analysis: