FXEMPIRE
All
Ad
Corona Virus
Stay Safe, FollowGuidance
World
115,184,084Confirmed
2,554,304Deaths
90,851,350Recovered
Fetching Location Data…
Advertisement
Advertisement
Chris Svorcik
AUD/USD

The AUD/USD is showing a bull flag continuation chart pattern. But the daily chart also has a clear long-term divergence pattern. This could indicate a reversal as well.

Advertisement
Know where the Market is headed? Take advantage now with 

75% of retail CFD investors lose money

Let’s review the key support and resistance levels to help determine the next price swing.

Price Charts and Technical Analysis

The AUD/USD will most likely build a larger retracement within wave 4 (pink). A break below the support trend line (green) confirms that price swing to lower levels (orange arrows).

The main target of the retracement are the 38.2% and 50% Fibonacci levels of the wave 4 (pink). These should act as a bouncing spot if the wave outlook is correct (green arrows).

A deeper bearish price swing, however, indicates a reversal (red circle). In that case, a bearish reversal could push price towards the round 0.70 support level (red arrows).

An immediate bullish breakout above the resistance (orange) trend line of the bull flag chart pattern, however, could indicate one more push higher (blue arrow) to complete the wave 5 of wave 5. With divergence in play, this could end the uptrend and start an ABC down.

On the 4 hour chart, an ABC pattern (grey) is clearly visible within the bull flag chart pattern. The key decision zone is the support (green) and resistance (orange) trend lines.

Currently price action is respecting the 23.6% Fibonacci retracement level. A bullish breakout or bullish bounce at the shallow 38.2% Fibonacci level indicates an uptrend.

But be aware that a deeper bearish push confirms a larger bearish reversal and invalidates the current bullish wave outlook.

Good trading,

Chris Svorcik

The analysis has been done with the indicators and template from the SWAT method (simple wave analysis and trading). For more daily technical and wave analysis and updates, sign-up to our newsletter

For a look at all of today’s economic events, check out our economic calendar.

 

Advertisement
Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk