Hello traders! My forex pick for the day is the Australian dollar versus the US dollar currency pair (AUD/USD). What I wanted to show is the possible 5-day symmetrical triangle pattern forming in its 1-hour chart. In case you do now know, symmetrical triangles have 50% chances of breaking out/breaking down and what usually determines the breaking point is where the trend is coming from. If the triangle’s coming from an uptrend, then there would be a higher chance of the price breaking out from the pattern’s resistance. If the triangle’s coming from a downtrend, then there’s a higher chance of a breakdown from the pattern’s support. In the current case of this Aussie pair, the triangle we are seeing is coming from an uptrend. The price is also moving above the 50 and 100-period moving averages which gives an overall bullish bias for the pair. Once the triangle’s resistance gets breached, the upside target price could be the 1.0254 all-time high. I got this by gauging the size of the triangle’s base then added it to the possible breakout point. In case a breakdown occurs, the target price could be 1.0055. However, before it reaches that level, it needs to first clear out the 1.0083 support.
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