Hi Traders!
We have a rectangular range setup here on the 1D AUDUSD chart. With the rectangular setup, though it is a neutral formation where it can breakout to either side, there is a bearish bias here. The reason for this is by looking at the price action; there is a long term uptrend here on the 1D chart. However, with the retracement to the uptrend, there is no momentum to continue upwards at all. We also had a Head & Shoulders idea a few days ago (link included below) to support this idea.
The level to look out for the support break is 0.65644. If we break and close below this area, then the target area is 0.63864.
That being said, we still cannot ignore the idea of possibly breaking to the upside. The level to break and close above is 0.68242 and then possibly a test of the psychological level of 0.70000.
Please do not forget to like, comment and follow, we would love to hear your thoughts!
Thank you for your support.
BluetonaFX
We have a rectangular range setup here on the 1D AUDUSD chart. With the rectangular setup, though it is a neutral formation where it can breakout to either side, there is a bearish bias here. The reason for this is by looking at the price action; there is a long term uptrend here on the 1D chart. However, with the retracement to the uptrend, there is no momentum to continue upwards at all. We also had a Head & Shoulders idea a few days ago (link included below) to support this idea.
The level to look out for the support break is 0.65644. If we break and close below this area, then the target area is 0.63864.
That being said, we still cannot ignore the idea of possibly breaking to the upside. The level to break and close above is 0.68242 and then possibly a test of the psychological level of 0.70000.
Please do not forget to like, comment and follow, we would love to hear your thoughts!
Thank you for your support.
BluetonaFX
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Related publications
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.