AUD/USD forecast:
- Australian dollar/US dollar Stocks fell, failing to build on Monday’s gains in a trading session marked by some risk aversion and a benign tone. USD strength
- Despite Tuesday’s poor performance, australian dollar/USD It seems that a double bottom is forming.
- In this article, we look at the key Australian technology levels to watch over the coming days.
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In a trading period marked by risk aversion and moderate US dollar strength, the Australian dollar failed to consolidate Monday’s gains and was flat on Tuesday. Despite Tuesday’s subdued performance, AUD/USD appears to be forming a double-dip, which usually tends to be a sign that selling pressure dries up before a rebound.
In more detail, a double bottom is a reversal pattern consisting of two similar troughs separated by a central peak, and often appears in the context of an extended downtrend. This bullish configuration is confirmed when the asset in question completes a “W” shape and breaks above the neckline resistance defined by the intermediate peak.
To assess the potential range of price appreciation after double bottom validation, traders can predict the vertical height from the breakout point. This estimate provides a practical approximation of the magnitude of expected movements and provides valuable guidance when considering trading strategies and risk management.
Uncover the strategy behind consistent trading. Download our How to Use AUD/USD guide for important insights and tips.
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How to trade AUD/USD
Zooming in on the specific case of AUD/USD, neckline resistance is currently at 0.6500/0.6510. If the pair is able to remove this barrier in a clean and decisive manner, buying momentum could build and pave the way for a rally above the psychological 0.6600 level.
To obtain a more robust confirmation signal, it is important to examine volumetric data. In this context, a small amount of trading during the formation of the second bottom followed by a spike in trading volume during the breakout serves to strengthen the pattern’s bullish bias.
Conversely, if sellers become assertive and push the price lower, support is seen at 0.6360. The downside clearance of this floor negates the double bottom and creates the right conditions for a fall towards 0.6275. Further decline will shift the focus to 0.6170.
Download our sentiment guide to gain valuable insight into how positioning affects the trajectory of AUD/USD.
change |
long |
shorts |
OI |
every day | Five% | -11% | 1% |
weekly | -13% | 48% | -Four% |