Analysis of the AUD/USD Chart
This chart highlights price action over a shorter timeframe (15-minute candles), showcasing a clear structure indicative of **accumulation**, **breakout**, and transition into a **markup phase**. Here's the detailed breakdown:
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**Market Cycle Stage**: **Early Markup Phase**
- The price has broken out of a prolonged **accumulation range** (yellow box), confirmed by the surge in volume and bullish price action, marking the beginning of the markup.
---
**Key Observations**
#### 1. **Accumulation Zone**
- The range-bound movement between **0.6130** and **0.6158** indicates a classic Wyckoff accumulation structure:
- The **spring** (false break below support near **0.6130**) confirmed demand as buyers entered strongly.
- Subsequent consolidation above **0.6158** created a base for the breakout.
2. **Breakout and Markup**
- A significant breakout occurred above **0.6165**, aligned with rising volume, signaling strong institutional buying activity.
- The price is now testing the **1.618 Fibonacci extension level (0.6187)** with momentum suggesting a continuation towards the next targets:
- **2.618 (0.6205)** and potentially **4.236 (0.6247)**.
3. **Volume Analysis**
- Volume increased significantly during the breakout, validating the upward momentum.
- Current volume is tapering slightly but remains steady, showing sustained interest in the rally.
4. **Fibonacci Levels**
- The price retraced to the **0.618 Fibonacci level (0.6173)** before resuming its upward move. This aligns with the expected bullish trend structure.
5. **Latest 5 Candles and Wick Behavior**
- The last 5 candles are predominantly bullish, with minor wicks to the downside, reflecting strong buying pressure.
- Minimal upper wicks indicate that sellers have not regained control, confirming the dominance of buyers.
6. **Support and Resistance Levels**
- **Support**:
- Immediate: **0.6173** (Fibonacci retracement level).
- Stronger: **0.6158** (previous breakout point and resistance turned support).
- **Resistance**:
- Immediate: **0.6187** (current test level).
- Key targets: **0.6205 (2.618)** and **0.6247 (4.236)**.
---
**Conclusion**
The AUD/USD pair is in the **early stages of a markup phase**, with price action and volume confirming strong bullish sentiment. If momentum holds, expect the price to target **0.6205** and possibly higher levels like **0.6247**. A pullback to **0.6173** or even **0.6158** would provide opportunities for re-entry before further continuation.
This chart highlights price action over a shorter timeframe (15-minute candles), showcasing a clear structure indicative of **accumulation**, **breakout**, and transition into a **markup phase**. Here's the detailed breakdown:
---
**Market Cycle Stage**: **Early Markup Phase**
- The price has broken out of a prolonged **accumulation range** (yellow box), confirmed by the surge in volume and bullish price action, marking the beginning of the markup.
---
**Key Observations**
#### 1. **Accumulation Zone**
- The range-bound movement between **0.6130** and **0.6158** indicates a classic Wyckoff accumulation structure:
- The **spring** (false break below support near **0.6130**) confirmed demand as buyers entered strongly.
- Subsequent consolidation above **0.6158** created a base for the breakout.
2. **Breakout and Markup**
- A significant breakout occurred above **0.6165**, aligned with rising volume, signaling strong institutional buying activity.
- The price is now testing the **1.618 Fibonacci extension level (0.6187)** with momentum suggesting a continuation towards the next targets:
- **2.618 (0.6205)** and potentially **4.236 (0.6247)**.
3. **Volume Analysis**
- Volume increased significantly during the breakout, validating the upward momentum.
- Current volume is tapering slightly but remains steady, showing sustained interest in the rally.
4. **Fibonacci Levels**
- The price retraced to the **0.618 Fibonacci level (0.6173)** before resuming its upward move. This aligns with the expected bullish trend structure.
5. **Latest 5 Candles and Wick Behavior**
- The last 5 candles are predominantly bullish, with minor wicks to the downside, reflecting strong buying pressure.
- Minimal upper wicks indicate that sellers have not regained control, confirming the dominance of buyers.
6. **Support and Resistance Levels**
- **Support**:
- Immediate: **0.6173** (Fibonacci retracement level).
- Stronger: **0.6158** (previous breakout point and resistance turned support).
- **Resistance**:
- Immediate: **0.6187** (current test level).
- Key targets: **0.6205 (2.618)** and **0.6247 (4.236)**.
---
**Conclusion**
The AUD/USD pair is in the **early stages of a markup phase**, with price action and volume confirming strong bullish sentiment. If momentum holds, expect the price to target **0.6205** and possibly higher levels like **0.6247**. A pullback to **0.6173** or even **0.6158** would provide opportunities for re-entry before further continuation.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.