AUDUSD Down to 1.272 Extension, or Double Bottom?
At the current moment the Aussie Dollar is presenting us with two conflicting scenarios.
Bearish Scenario: After reversing off of the .382 Fib retracement, price may continue downward breaking the .6985 level of support.
If this bearish trend continues, I expect price to find support near the 1.272 extension of the bearish impulse leg--a level with strong confluence with Jan 1, 2019 historical structure.
Bullish Scenario: After reversing off of the .382 Fib retracement, price has found support at the .6985 level.
With clear RSI Divergence, this level of support can hold and a double bottom may be formed.
In this case, I will target the .382 retracement once again, with a secondary target at the .5 retracement.
Bearish Scenario: After reversing off of the .382 Fib retracement, price may continue downward breaking the .6985 level of support.
If this bearish trend continues, I expect price to find support near the 1.272 extension of the bearish impulse leg--a level with strong confluence with Jan 1, 2019 historical structure.
Bullish Scenario: After reversing off of the .382 Fib retracement, price has found support at the .6985 level.
With clear RSI Divergence, this level of support can hold and a double bottom may be formed.
In this case, I will target the .382 retracement once again, with a secondary target at the .5 retracement.