AUDUSD in a strong bullish trend with the formation of higher highs and higher lows. This formation is continuing towards the upside where we have marked the profit target area. Apart from this, we see slight retracement towards the resistance turn support area, priced at 0.6850. We also see a double bottom forming at this region from where we will go long on the pair. Market has formed a double bottom at this current area.

Apart from this, there is trendline indiciation other than the resistance trendline breakout out for buys and having a pending retest, which we might see at the support level. This will give us an additional confluence.

The retracement area which has the confluence with the support is the level of 61.8%. This level pertains to be a solid level once the market breaks out for buys.

The EMA 50 is also bullish and is getting steeper into the bullish angle. Earlier, it was a flat curve. Now as its turning into a steeper one, we evaluate the strength of the bullish momentum forming.

RSI is at 41. This needs to be neutralized at the support level in order for us to get long on the position. 

This support needs to be tested at prices and with the RSI being at the 50 level, the chances for the pull up would be strong. On the other hand, we can have a bullish divergence at the over sold region.

AUDUSD at double bottom

Aug 31 2022

Stop Loss -0.99%

Holding time 1d3hr

0.68470

Entry price

0.67790

Stop loss price