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Yesterday I mentioned that a possible double bottom pattern was forming on AUDUSD. The level to break to confirm the pattern was .8825. Although the market wasn’t able to overcome the level yesterday, it did close about 14 pips above the level today.
I would have liked to see a more convincing close, however the pattern is confirmed nonetheless. From here we should look for .8825 to act as support. The measured objective for the pattern comes in at .8988, although I do expect to see the .8925 level to act as resistance on the way up.
Do keep in mind that we have Australian employment data coming out within the hour. This leaves you with two options on how to trade this pattern – a blind entry on a retest of the neckline or wait for bullish price action on a retest of the neckline. Either way we need to see .8825 hold on a 4 hour basis to keep the pattern alive.
Summary: Two options for an entry – Take a blind entry on a retest of the neckline or wait for bullish price action on a retest of the neckline. Initial resistance comes in at .8925 with a measured objective at .8988.
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