AUDUSD is testing the breakout resistance
It is testing the 0.7200 upside reversal resistance after the bounce off 0.7000. For a downside extension and a higher probability of the short trade entries, we need to see a confirmed break below 0.7000. A confirmed break above 0.7200 is required for an upside reversal flag consolidation breakout to be confirmed and H&S formation to be invalidated. The overall medium-term is an uptrend but we need to see a confirmed break above 0.7250 for an upside extension. A break above the 0.7250 would invalidate the downside impulsive swing.
Note – We are inclined to short entries but only on a confirmed break below 0.7000
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