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Fan Yang

AUD/USD in a Double Bottom Attempt

To start the week, AUD/USD broke below a triangle consolidation, which was a bearish continuation signal in the 1H chart. This puts the 0.6940 low in sight with risk of extending lower to at least the low on the year around 0.69. 

AUD/USD 1H chart 9/30
(click to enlarge)

The 1H chart shows the market finding support at 0.6940 again, bringing price all the way back to the 0.7040 resistance area. I still consider the market bearish, but maybe more neutral-bearish now. Only a break above 0.7060 would validate a completed double bottom for me. Then, if price can hold above 0.70, I would start considering the bullish scenario.

Otherwise, I am holding a bearish bias based on the prevailing trend and the fact that the FOMC is relatively more hawkish than the RBA. A break below 0.6980 for me would be a bearish continuation signal to threaten the 0.6940 support again.

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