AUDUSD Rising Wedge| Structural Resistance| Technical Target

29 мая 2020 г.

Evening Traders,

Today’s Analysis – AUDUSD – trading in a rising wedge pattern at key structural resistance, a break bearish is plausible.

Points to consider,
- Consecutive higher lows
- Strong structural resistance
- Technical target (local support)
- RSI and Stochastics lower high projection
- Volume influx needed

AUDUSD has been putting in consecutive higher lows as it trades closer to its rising wedge apex.

Structural resistance is a key trade location; a break above this will NEGATE the trade setup.

The technical target for this rising wedge is at local support, assuming price breaks down from the structural resistance zone .

The stochastics and the RSI is projected to establish a lower high if price tests structural resistance. This will put in a double bearish divergence, thus putting more emphasis on a breakdown.

There needs to be a volume influx upon a break in either direction of the rising wedge for confirmation. This will help avoid any bear and or bull traps.

Overall, in my opinion, AUDUSD is approaching a key macro structural resistance. A short trade is valid with defined risk above resistance. For confirmation, wait for the wedge to break with increasing volume .

What are your thoughts?

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And remember,

“Focus, patience, wise discernment, non-attachment —the skills you acquire in meditation and the skills you need to thrive in trading are one and the same.”
― Yvan Byeajee