Trendline Breakout Creates Potential Buying Opportunity?
Hello Traders
Looking at the AUDUSD chart, we can see that there is a significant trendline resistance which has now turned into support after the market formed a double bottom and broke the trend line. While some might mistake this for a flag pattern and consider taking the short side, the double-bottom formation suggests otherwise, and we could potentially see a buy-entry opportunity.
To enter this setup, I would wait for the market to retest the support zone near the trendline support at 0.6600. Once the market approaches this zone, we can start looking for potential buy entries. One possible entry strategy could be to wait for a bullish price action confirmation, such as a bullish pin bar or bullish engulfing candlestick pattern, to signal a potential reversal.
It's important to note that trading always carries risk, and it's crucial to have a solid risk management plan in place to protect your account from potential losses.
Thank you for reading this analysis. Please let me know if you have any questions or if there's anything else I can assist you with.
happy trading
Looking at the AUDUSD chart, we can see that there is a significant trendline resistance which has now turned into support after the market formed a double bottom and broke the trend line. While some might mistake this for a flag pattern and consider taking the short side, the double-bottom formation suggests otherwise, and we could potentially see a buy-entry opportunity.
To enter this setup, I would wait for the market to retest the support zone near the trendline support at 0.6600. Once the market approaches this zone, we can start looking for potential buy entries. One possible entry strategy could be to wait for a bullish price action confirmation, such as a bullish pin bar or bullish engulfing candlestick pattern, to signal a potential reversal.
It's important to note that trading always carries risk, and it's crucial to have a solid risk management plan in place to protect your account from potential losses.
Thank you for reading this analysis. Please let me know if you have any questions or if there's anything else I can assist you with.
happy trading
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