AUDUSD – Triangle Holds Clue to Next Move

AUDUSD – Triangle Holds Clue to Next Move

It was a mixed week for AUDUSD which began with the pair breaking the neckline of the double bottom and looking much more optimistic, before falling below again on weak Chinese trade data and speculation that the reserve Bank of Australia may cut interest rates at the next meeting.

the result of what has been some consolidation in the pair and forming a triangle that could offer clues about his next move.

There is still an argument for future gains in the pair, despite China slows and growing speculation that the RBA may cut rates at its next meeting on November 3. First, far lower RBA rate speculation and China slowdown is nothing new.

The chart also suggests traders are undecided at this stage rather than decreasing. Price consolidates rather than fall. Wednesday's low does not break below the daily closing levels in the middle of the double bottom so depending on how you measure these formations, one could argue that it remains intact (although I prefer to use the up rather than closing it is therefore invalid now in my opinion).

While the triangle on the map is only speculative, because it is only connected by two points on each trend line, a break above suggests that traders are more optimistic again. A break below would not even say that the market is bearish again, it could simply mean we see a greater return fib retracement level of 50% or 61.8% and the formation of a flag or falling corner.

meanwhile we could see more consolidation in the pair and the next clue might come from the way he reacts to the support trend line, assuming that it reached that level.

It is interesting to see the order book OANDA shows a number of purchase orders opened around 0.7220 and 0.72, the two key levels down in this pair. There are also a growing number of open positions as the pair slightly lower which suggests that many traders who see this as a dip rather than a longer maturity movement.

in the last month, the OANDA clients were very well positioned in this pair then this could be considered a bullish signal.

[ad_2]
Read More : AUDUSD – Triangle Holds Clue to Next Move