AUDUSD Falling Wedge And Double Bottom
Looking at Trading a possible falling wedge and double bottom on AUD/USD today in the 4-hour chart.
My bias is still in fact, bearish. Prices are still moving lower and on the Daily chart, we can see we have a nice gap where prices can still fall right down to the 0,668 price level. So, looking for longs right now is all very well and good, however, we have to be careful and make sure we have bullish confirmation of a reversal before we go jumping into the deep end and going long right away.
On the 4-hour chart, we have a falling wedge with price bouncing nicely in between the top and bottom of this wedge. Usually, we will see a breakout from a falling wedge, which will usually be to the upside.
We also have a possible double bottom inside of this falling wedge. I have highlighted the neckline in yellow. We would need to see the price strongly break out of the wedge and straight through the yellow neckline. We would need to see bullish volume accompany this move to help confirm that the bulls are back.
We have partial divergence on the MACD’s Histogram. This means that the sellers may weaken and the buyers may be getting ready to regain market control.
My concern is the large gap in the daily time frame. We still have space to fall. And, if we do fall further, we can then look for further short entries, using that previous daily support level as a target. However, no short setups currently present themselves, at least to me. I am patiently waiting to see if the price will break to the upside and reclaim that yellow line as support.
We have Bullish confluence all around: Falling Wedge, Double Bottom, Partial Divergence.
But, as much as we would like to try and convince ourselves that the price will indeed reverse from this point, the truth is, that on higher time frames, the price movement is still bearish. We are still making lower lows. So, let's watch what happens today. Perhaps we will get a bullish breakout.
See you on the next one.
The Vortex Trader
My bias is still in fact, bearish. Prices are still moving lower and on the Daily chart, we can see we have a nice gap where prices can still fall right down to the 0,668 price level. So, looking for longs right now is all very well and good, however, we have to be careful and make sure we have bullish confirmation of a reversal before we go jumping into the deep end and going long right away.
On the 4-hour chart, we have a falling wedge with price bouncing nicely in between the top and bottom of this wedge. Usually, we will see a breakout from a falling wedge, which will usually be to the upside.
We also have a possible double bottom inside of this falling wedge. I have highlighted the neckline in yellow. We would need to see the price strongly break out of the wedge and straight through the yellow neckline. We would need to see bullish volume accompany this move to help confirm that the bulls are back.
We have partial divergence on the MACD’s Histogram. This means that the sellers may weaken and the buyers may be getting ready to regain market control.
My concern is the large gap in the daily time frame. We still have space to fall. And, if we do fall further, we can then look for further short entries, using that previous daily support level as a target. However, no short setups currently present themselves, at least to me. I am patiently waiting to see if the price will break to the upside and reclaim that yellow line as support.
We have Bullish confluence all around: Falling Wedge, Double Bottom, Partial Divergence.
But, as much as we would like to try and convince ourselves that the price will indeed reverse from this point, the truth is, that on higher time frames, the price movement is still bearish. We are still making lower lows. So, let's watch what happens today. Perhaps we will get a bullish breakout.
See you on the next one.
The Vortex Trader
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