AUD/USD Breaks above a Symmetrical Triangle Pattern

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AUD/USD Breaks above a Symmetrical Triangle Pattern

The AUD/USD has been consolidating in October. Price has also started a congestion mode in the second half of the month. Ahead of tomorrow’s FOMC meeting, it seems like the AUD/USD is bullish, getting ready to make October’s action a price bottom.

The AUD/USD has turned a false break down last week to a bullish breakout of the symmetrical triangle. Price looks poised to test  October’s consolidation high around 0.8895-0.89. However we should watch what happens after the FOMC meeting. A break above 0.89 should initiate the bullish correction scenario, making October’s action a price bottom. Then if price can hold above 0.88 after a pullback, we would have more reason to believe AUD/USD is in a bullish correction. A break below 0.8750 threatens to put away the bullish outlook, and a break below 0.87 might revive the prevailing downtrend before October.

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Fan Yang has been a professional forex trader and analyst since 2007. He specializes in technical analysis and has a Chartered Market Technician designation since 2011. He was the chief technical strategist at CMSFX He was also the founder and chief currency strategist at FXTimes Over the years, Fan has not only been a trader and analyst but also an educator. As a proponent of both technical and fundamental analysis in trading, Fan advocates simplicity and discipline as key factors in making trading decisions when faced with so many "clues" and "signals". Currently Fan Yang is the chief currency analyst and webinar instructor at forexminute.com.