The 4 hour timeframe of the AUDUSD shown in this analysis captures over 4 months of price action. Commentary is provided below based on the numbers marked on the chart.
(1) A double top (ideally bearish) chart pattern did form between September 7, 2017 and January 31, 2018, with the chart pattern confirmed on May 2, 2018 at ~ 0.7515.
The width of the double top is indicated by the vertical red arrow and a projection of the width from confirmation downwards is very useful in determining the price level where the bearish price swing will terminate.
(2) Bearish price channel that helps provides a perspective for the current trend in the AUDUSD. A close outside of the bearish channel is the first sign of a possible trend change. Price action exiting the channel however does not automatically imply the resumption of a bullish trend in the AUDUSD.
(3) 0.72483 and 0.72082 indicate the latest/ most recent price level of supply in the AUDUSD and an earlier entry into a long (buy) position involves buying as soon a breakout occurs above 0.72483.
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