AUDUSD seems to have completed Bearish Butterfly Pattern.
RSI is also indicating for the movement to continue downside, being in the Over-Bought scenario, which is confirming as well on the completion of Harmonic Pattern - Bearish Butterfly.
We favour Shorting AUDUSD, for targets 0.7050 zone.
The AUDUSD is right in an entry zone for a Wolfe Wave move down to around 7220's or so. The MACD is starting to show some divergence to compliment that thought on the hourly with shorter timeframes already showing the same signals for a while now.
AUD/USD ( HOURLY )
SUMMARY:
The short term trend of AUD/USD is bullish on charts and price is trading above 200 DMA and 50 DMA on 4 hourly charts with appearance of golden cross. It is having an important resistance at the level of 0.7260 and support at the level of 0.7110. If it breaks its resistance level on the higherside and sustains above it then we...
OIL price looks to be on hard resistance, same with AUD (strong resistance at 0.7258). A bearish Bat pattern emerges and could be taken if a bearish divergence and reversal bar pattern show up inside the PRZ box.
Bullish Gartley on H4 chart (blue) almost complete TP3 (0.7249)
FX:AUDUSD
Double Top followd by a 61.8% retracement;
Target the Extensions, look left, "structure leaves clues" ;)
At the other side of the coin, an eventual bullish momentum can send the price aboveprevious high's with a 5 waves impulse:
wave2=61.6% retracement, we should target an extension of wave 1 into the 161% price zone, then a retrace that can not...
This trade is now for more than a week on my radar. I got short yesterday at 0.7200 even handle. Since then we saw more buying pressure but never closed above X (white horizontal ray). Moreover we formed a double top during the asia session with nice bearish divergence on the RSI.
It therefore offers a better risk/reward.
Check out my related post for more...
FX:AUDUSD
CYPHER:
Point B:
38.2% to 61.8% XA
Point C:
127% to 141% ext XA
Point D:
78.6% XC
Target:
TP1 38.2% CD
TP2 61.8% CD
GARTLEY
Point B:
61.8% can not touch 78.6% XA
Point C:
38.2% to 88.6% AB
Point D:
78.6% XA
127% ext AB
Target:
TP1 38.2% AD
TP2 61.8% AD
Safe Trades;
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