Double Bottom Pattern on AUD/USD and Resistance Ahead.

I don’t know who needs to hear this, but there is still a big BUY opportunity on the AUD/USD pair.

Whichever angle you decide to look at it from, you will end up with one possible scenario, an UPTREND.

Before that and more, let me remind you that we have recently introduced a paid signals service both for Forex and Fixed Time Trading. You can join us here if you are interested.

In my earlier analysis of the AUD/USD, immediately after the release of the RBA report, I did mention that there were two main reasons to BUY the pair.

1). A Stable growing economy in Australia backed by Government policies.

2). The labor market in Australia coming out strong from the RBA report.

It seems there were many other retail traders who shared my sentiments and bought the news to a thrust.

Buying pressure is still strong on the pair and if the momentum is maintained, we will wake up to even higher prices.

Technical Perspective.

The area around 0.71628 price level was a significant area of value in our previous analysis.

Reason being that it has proved to be a stronger support zone for the pair in the 4 recent attempts for price breaks.

The 1-hour chart of AUD/USD also now shows a clear double bottom pattern which from a technical standpoint almost ascertains higher prices in the future.

A Double Bottom is a chart pattern where the price holds a low twice and fails to break lower during the second attempt, instead, rising.

As you trade, beware of this zone 0.72299.

It is a significant resistance zone and the AUD/USD pair may have trouble going past it for some time.

I will continue monitoring the pair and give more updates on its outlook.

My BIG question to you though, do you think the price will break past the 0.72299 price point? Or will we wake up to a correction and a possible reversal?

Leave your comments down below.

 

On my side, I have a good feeling about more buying pressure coming in and for that reason, I will hold my position till I can’t hold it anymore.

And hey, don’t take my word for it. You never do anyway!

After all, I am just a black hat blogger at Joon Online and in most instances, my wayward opinion on many things doesn’t always matter.