We have a 5 Wave upward Impulse complete which is followed by a Correction which is a Flat. Hence this 5 Wave upward Impulse becomes a Wave 1 and the Flat structure becomes a Wave 2, both are complete and hence now we have The Wave 3 in the Long Term hence overall the Trend is Upward.
This Trade is for the Long Term...
Prices have been back from 0.65600 levels twice and the triangle formed is holding a strong support line. Today, prices have fallen in the Asian sessions but recovered some upward strength.
Also, 0.64322 have Bollinger bands support and trend line support.
From here, prices may test 0.65600 and above levels again as RSI is pointing to an upward movement, and if...
We are getting a bullish movement in audusd. On the daily chart, we can see the trendline is supporting. So, it's pointing that the trend channel must be followed.
So, from this view, we can take a long position, with stop at - 0.63500 and take profit at 0.6700
A good risk-reward ratio we getting here.
BEST FOR SWING TRADE!!!!!
Thumbs up :)
AUDUSD has rebounded from the falling wedge pattern in which it has been moving from past one year. The bounce was supported by the positive divergence between the price and RSI indicated by blue lines. The upwards thrust can bring the prices to 0.68676. The stop loss for the entire trade will be at 0.66582.