Daily Price Action
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AUDUSD Bulls on the Move, Indeed

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Important: I use New York close charts so that each 24-hour period closes at 5 pm EST.

Click here to get access to the same style charts I use on this website.

Last Thursday I pointed out a falling wedge pattern on the AUDUSD daily time frame and titled the post, “AUDUSD bulls on the move“. The idea was that a daily close above wedge resistance (near 0.7760/70 at the time) would expose the next key resistance at 0.7870/80.

Despite Friday’s 60-pip surge, buyers were unable to close the session above wedge resistance. Instead, a bearish pin bar formed in the wake of the selling pressure.

Some were considering going short following Friday’s pin bar. However, on Sunday I gave three reasons why I didn’t view the Friday candle as a sell signal.

It’s a good thing too as Monday’s session closed well above former wedge resistance at 0.7760. At that point, I was waiting for a retest of old wedge resistance as new support.

That retest materialized just a few hours ago. Today’s session hit a low of 0.7744 before rebounding higher by 40 pips, and buyers are still pushing the envelope.

Keep in mind that Australia reports employment figures in about 10 hours at 9:30 pm EST. The result will no doubt shake things up for the Australian dollar, but at the moment things are looking relatively bullish for the AUDUSD.

As I mentioned last week, the daily close (New York 5 pm EST) above old wedge resistance exposes 0.7870/80 with a close above that opening the door to the 0.7970/80 area.

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AUDUSD daily time frame

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9 comments
Khaya says

Hey Justin great analysis also had this set up on my watchlist entered long on the EMA cross over with a pretty decent bid price @1.05866

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Emuobo says

Hi Justin, please I have issues with pyramiding a winning trade. Where do I set the new stop loss? Thanks

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Oaitse says

Want to learn price action need a mentor

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Alfred says

Great and reliable analysis

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derrick says

good work

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Ed says

Hi Justin, how it looks today. Inverted head’n shoulders?

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