Baxia Markets
June 15, 2021

Falling Wedge Comes To End, AUDUSD Meets Support

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The price of AUDUSD has hovered around 0.772 since the beginning of the year 2021. Thus, no longwave, no significant trend. It seems like the price is struggling. Traders are looking forward to seeing a trend that can lead the trade. Luckily, we have a pattern now. The falling wedge pattern has been forming for 40 days. As we know, the falling Wedge is a signal for break up, so now, is this a time for a breakout? The support level is showing up, and the falling Wedge is welcoming the end.




Since the pattern is a falling Wedge, the short-term trend is downward, most of the oscillators show the bearish signal. In addition, some indicators are lagged, like MACD. So, for a pattern like Wedges, we cannot just focus on the indicators. However, Ichimoku overlaps with the price line, which means the cloud may change the direction at any time. Therefore, I consider this as a breakout signal. The moving average is doing the same thing, overlaps with the price line; also, this could be considered a breakout signal.


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