AUD/USD has been trading sideways since early April. This week, price fell within a consolidation mode to a support level around 0.9210, seen going back to the end of March as you can see in the 4H chart.
There is a double bottom forming as we get into the 5/23 session since AUD/USD is showing respect again at the 0.9212 level.
There is a double bottom scenario. A break above 0.9275 would complete the double bottom. This would reflect a market that is staying in the consolidation mode, which opens up the 0.9313 pivot, and then the 0.9375-0.94 resistance area.
As you can see on the daily chart, the prevailing trend has been bullish before April, so there is another reason to be more confident of the bullish mode if AUD/USD does break above 0.9275.
If AUD/USD however holds below 0.93, and then falls below 0.92, the pair has the 0.9130-40 pivot area as the short-term target. Below 0.9130, the AUD/USD might open up a bearish outlook in the medium term with downside toward
1) 0.9060 (50% retracement)
2) 0.8965 (61.8% retracement)
3) 0.8885 ( support resistance pivot)
For now, let’s focus on 0.9275 and the 0.92 handle for direction in the short-term.
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