Forex Video Briefing (10/20) – AUD/USD’s Triangle Pattern
AUD/USD found support at 0.8638 and has rallied to almost 0.89. The 4H chart shows price trading sideways within this range. It has also started to trade in a triangle, with lower highs and higher lows.
With the AUD/USD coiling and price at about 2/3 way in a triangle, we should anticipate a breakout soon. Tonight’s Chinese GDP data might shake up the markets a bit through risk sentiment. If there is risk appetite, we might see the AUD/USD rally. A break above the 0.88 level should clear above the triangle, and expose the 0.89 level, where we should expect resistance again due to the prevailing downtrend, resistance pivot, and the 200-period SMA.
Risk aversion should bring price below 0.8750. If it doesn’t, the upside risk remains. A break below 0.8750 would bring back the bearish bias. A break below 0.87 might be needed to clear below the triangle, and expose 0.8638, but with more downside risk since the prevailing trend is bearish.
the weekly chart shows that a break below the current low opens up the 0.8577 pivot in the near-term, and the 0.8315 and 0.8066 lows in the medium-term.