Market Update: AUDUSD, continuation pattern in play?
Hi traders, today we want to take a look at the AUDUSD as price continues to trade in a possible continuation pattern. This could lead to further extensions higher if confirmed.
Looking at the daily AUDUSD chart below we can see the clear trend price remains in. We can also see the consolidation after buyers broke above resistance. This consolidation has taken the shape of an ascending triangle pattern. These patterns in existing up trends are seen as bullish continuation patterns. Until the pattern is confirmed by a breakout it’s still seen as unconfirmed. This means that it may not turn into what we expect and that’s why we wait for the market to break out and show us that there could be a new extension higher on the cards.
If we do see a breakout, measured move rules point to around the .7577 area as a possible target for buyers. This level is just below the upper resistance point we have marked in. It’s now up to buyers to show if they still have the numbers and momentum to push this trend higher.