Triangle Breakdown Tested: Key Moment for AUD/USD

Triangle Breakdown Tested: Key Moment for AUD/USD
In today’s technical analysis, let’s see Australian dollar to American dollar, where a crucial thing is unfolding right now. As you can see, the price was moving inside a symmetric triangle pattern marked with black lines. At the end of the previous week, we had an escape to the downside from this formation, which in theory gives us a signal to sell. In theory — because Friday and Monday brought us a notable bullish reversal, and that sell signal now hangs on the edge.

Two scenarios are possible here. First one: the price manages to come back inside of the triangle. That would mean a cancellation of the breakout, it would classify as a false breakout, and it would generate a strong signal to go long, as buyers would regain full control of the structure.

Second scenario: the price fails to push higher and instead breaks below the blue support. A daily close below this level would be a confirmation of the negative sentiment, a confirmation that the breakout was legitimate, and it would activate a proper signal to go short with momentum. So this battle around the blue support will determine the next major move on AUD/USD.


 
Show More Articles
Axiory uses cookies to improve your browsing experience. You can click Accept or continue browsing to consent to cookies usage. Please read our Cookie Policy to learn more.