Welcome to another day of forex trading my friends! My pick for the day is the Australian dollar versus the US dollar currency pair (AUD/USD) or the “Aussie” as many would call it. As you can see, this pair has been consolidating sideways since October of last year. Upon doing so, there could be a 2-month symmetrical triangle pattern formed in the daily chart. In case you do now know, a symmetrical triangle, which represents a temporary retracement in prices, has a 50% chance of breaking out/breaking down and usually breaks with the trend. If the triangle’s coming from an uptrend, there would be a higher chance of the price breaking out from the pattern’s resistance. If the triangle’s coming from a downtrend, a breakdown from the pattern’s support is more likely. Remember, the breakout bias of this chart pattern will often be with the trend. The symmetrical triangle we currently have in the “Aussie” is bullish and if it breaks out from its resistance, we could achieve a target price of 1.0500. But before it reaches that, it first needs to surpass the 1.0256 all-time high. On the flip side, a breakdown from the triangle’s support could drop the value lower towards the 0.9800 price mark. Then the next support after that could be 0.9540.
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