Classic Triangle breakouts – Aud/Usd
In our tweet yesterday, we commented on how a classic symmetric triangle caused momentum to build up and provide a focal point for a breakout.
Though the downside was limited afterwhich, the retracement and upwards movement never did get clear off the 23.6 fib line. Today, at around the the same price level, we see a bigger triangle formation which supersedes the last and is formed from our higher resistance trendline since Jan 21st.
The immediate breakdown this time around was more resolute and has breached the last fib retracement from highs of Jan 11. It has now formed a new low, testing that of Jan 4th. I feel that this down move is now flirting with new levels and might face some support before breaking down. If it does, the next level will 0.8940, BOW is .8900
My bias is on the upside as this is an extended downtrend move which will have retracements. There is a 7 candle period which has not broken previous highs at all. This isn’t in the normal market cycles behaviour and expect a retracement till the .9030-50 area before continued downtrend or uptrend(bias).
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Seeni J G
