Hello traders, investors and community. Today i will take a bullish look on AUDUSD and what the chart is showing me, the absolute high probability signs for some bullish outcomes. On my chart you see the daily price action of AUDUSD. AUDUSD is just about to form a massive bottom formation with an descending triangle about to complete. I detected it and it is marked with the red trendlines, price is still remaining in the triangle. It is for sure that it will break out and form some bullish movement, the question is when it will complete.
In my chart you can see that price is touching the upper trendline of the triangle, it is possible that we break out of the channel the next time otherwise price can still remain in the triangle and touch the lower trendline before it breaks out. Also AUDUSD had some good volume, (over average), in the last bull-wave which you see in the chart. There is a huge support zone at 0.64 - 0.69, that if we come back to this level there is a high probability for some good support in this area.
Also you see this huge bullish dragonfly doji formed on the 3th of january, this shows how storng and important that support level is.
When we break out of the triangle without coming back again! There is a target projection which you see in my chart. This target will be intact when we break out and confirm the triangle. When you see the light blue striped trendline where the target remains you can see that it is EXACTLY the point of resistance of the previous bear moves till we reached the bottom. You can see it marked with the dark blue square. If we remain in the triangle and breakout later the target will be a different price but the same length!
The RSI shows me that we had some oversold condition before the two last bull moves began, it can come back to the trendline and form a bullish divergence. I am expacting this to happen either when we break out of the triangle now or when we remain in the triangle and confirm the lower trendline.
This i only educational information and should not be used to take action in the markets!
Peace and love to everybody!
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ANALYSIS UPDATE: AUDUSD retested important supports in the support zone before it rebounded and increased the volume.
AUDUSD has reached the target zones after bouncing in the support zone.