Long

AUD/USD DOUBLE RESISTANCE BREAKOUT|SCENARIO DECONSTRUCTION

Updated

The strong bullish movement has culminated in the pair breaking out of the strong horizontal resistance, and also of the diagonal falling channel resistance lines.

If the breakout is confirmed and the daily candle closes above both levels, then a move up towards two red resistance lines is likely.

However, if it does not close above the levels, then, it might return into the channel, or at least retest the minor diagonal support line that is also visible on the chart. In case the breakout is rejected ,the bearish sentiment is then supported by the RSI being close to overbought levels, and also the fact that the pair is generally in downtrend on the weekly.

I am slightly bullish biased, but our function is not to take sides but to play the probabilities around the key levels, with the help of patterns and other confirmation giving signals. So we shall wait and see how the situation plays out.

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Note

The price met the first resistance!

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