AUDUSD long-term falling line rejection
AUDUSD has been rejected from the long-term falling trendline for the second week as we can see on the weekly chart. We are within a long-term rising wedge with well-defined breakout levels. For the upside reversal from here, we need to see a price action break above 0.7200 which is highly unlikely as the pair is losing momentum. A break below narrow shaped rising wedge is required for the downside reversal and a long-term downtrend continuation.
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On a daily chart, we can see that the instrument is testing the long-term rising wedge 0.7140. Look for the short trade entry upon a break below this level with the stop loss above 0.7150 and a profit target of 0.6800 near-term. Our trading system is indicating a potential of 200-500 pips of profit. Look for the short trade entries invalidation to come only on a clear daily close above 0.7200.
We have used the combination of the top-down trading analysis to get these key levels explained in the charts.
