AUDUSD forming a double bottom, potential reversal!

7 feb 2018

AUDUSD has formed a really interesting setup since yesterday. After recovering, it has started to form a double bottom reversal. Coupled with the bullish exit of our descending resistance-turned-support line, this gives us a nicely setup double bottom reversal. Our 1st support remains at 0.7891 (Fibonacci retracement, horizontal overlap support) where a strong rally could occur. Our first level of resistance is at 0.7944 (Fibonacci retracement, horizontal swing high resistance, double bottom exit potential) and our next major level of resistance is at 0.7977 (Fibonacci retracement, horizontal breakout level).

RSI (34) has made a bullish exit of our long term descending resistance-turned-support line signaling that a bullish exit could be expected.

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