AUD/USD Prepares for Uptrend after Wave 4 Bull Flag

Dear traders, the AUD/USD is showing strong bullish momentum, which looks like a wave 3 (purple). The current pullback could be a wave 4 (purple). This means that the uptrend could soon continue.

1 hour chart

The AUD/USD is in an uptrend (blue box) when reviewing the alignment of all the Moving Averages. Price is now building a bull flag pattern as a pullback. The uptrend continuation could be part of the wave 5 of wave 5. The main target is at 0.6750.

The AUD/USD needs to break the resistance Fractal (orange line) for a bullish breakout with the trend. Another scenario is that price bounces at support (green box) for a deeper retracement. Both the break and bounce could confirm (green check) the uptrend continuation. A break below the wizz 5 makes this wave outlook less likely.

Good trading,

Chris Svorcik

The analysis has been done with the indicators and template from the SWAT method (simple wave analysis and trading). For more daily technical and wave analysis and updates, sign-up to our newsletter

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This article was originally posted on FX Empire

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