AUDUSD: Possible multi-week reversal structure
Read today’s article Aussie and Kiwi marching to the beat of their own drum.
Management and risk description
The dominant chart structure in the Ozzy is a potential developing 16-month Inverse Head and Shoulders reversal formation (refer weekly chart below). A sustained break above neckline resistance (currently situated at .7735) establishes an upside objective of .8830. From an Elliott Wave perspective, it is tenable to interpret a developing Wave 3/ advance, wherein if Wave 3/ equals Fibonacci 1.618 X Wave 1/ then a rally toward the .8785 level can be anticipated (see daily chart below).
Entry: Bought AUDUSD at market (.7661).
— Edited by Susan McDonald
Non-independent investment research disclaimer applies. Read more