AUDUSD is testing the monthly high
AUDUSD is testing the monthly high 0.7340 in the5th wave to target higher in a long-term rising wedge. A long-term rising with well-defined breakout levels has been formed. A break below 0.7050 is now crucial for a downside reversal and a confirmed break below is required to lead to a strong downside continuation all the way to 0.6670. A break and follow-through above 0.7340 are required for the upside extension to 0.78.
On a daily chart, we can see that the pair is in consolidation just below key resistance 0.7400. A confirmed break below 0.7150 is now required for an upside extension invalidation. Our trading system is indicating a potential of 400 pips of profit in the case of a confirmed break above 0.7340. The long trade entry could be triggered here.
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We have used the combination of the top-down trading analysis to get these key levels explained in the charts.
