AUDUSD is bullish, medium-term.

11 mar

Aussie-dollar trend in recent times has violated the characteristics of a proper downtrend. Looking at the 1W TF, there was a lower high (LH) and lower low (LL) seen on April 4 and October 10 2022 respectively. Price rallied to the Willis zone at Fib 0.5 to 0.61 on January 30 2023 and plummeted downwards with an expected target of 0.61900 completing a 100% retracement move in line with a bearish bias.

However, price rejected at the 0.62751 level back in October 23 2023 and has rallied back to make equal highs at 0.68712, while also breaking and retesting both the major zone (sky green rectangle) and an inner weekly trendline.

Furthermore, a weekly bullish engulfing candle has surged through the monthly zone and a break of the neckline of a double-bottom pattern on the daily TF.

I will patiently wait for a retest of this neckline, and if price sustains above it then I will go long with an overall target at 0.68690.