AUDUSD: Wedge Break Argues for Gains
AUDUSD appears to have broken above the top of a bullish Falling Wedge chart pattern after putting in a Hammer candlestick above the formation’s lower boundary. Near-term resistance lines up at 1.0552, with a break above that exposing the 1.0626-1.0658 area. Risk/reward parameters argue against placing a trade here and we will stand side for now. Furthermore, heavy congestion on the daily chart (not shown) argues against reading too much into current positioning.
Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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