All market moves consist of an impulse, a correction and then another impulse. Our job as traders is to identify the first impulse and then the correction so that we can trade the second impulse.
On the H4 above we can see a clear impulse move and then a 3 wave correction which has formed. It is not guaranteed that the bottom of wave 3 has formed but I have...
AUDUSD Technical Analysis
AUDUSD has been in consolidation zone since early 2016, the price barrier was from 0.6884 to 0.7773. Auzzie tried to breakout through this area numerous times but failed. However, last week auzzie smashed through previous resistance, and on Monday it retested the new support 0.7785 (previous resistance). Since AUDUSD has finally broken...
Looks like a possible double top on the Ozzie vs Loonie. Price tested the initial close high at about 1.0065 twice. There is a strong bearish divergence on the RSI, so let's see if the bears can hold and drive the price lower.
Stop-loss at 1.0110 - this is 10 pips higher than the 1.0100 level.
First take profit level at 0.9850
Hoping for second take profit level at 0.9650