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Fan Yang

A Broken Wedgie Spotted in the AUD/USD

The AUD/USD entered the month of July bearish and made a low on the year this week at 0.7371 before consolidating. The 1H chart shows the pair consolidating during the 7/8 and 7/9 sessions. Price action formed a rising wedge pattern which was eventually broken during the 7/10 European-US session.

AUD/USD 1H Chart 7/10

(click to enlarge)

As we can see in the 1H chart wedges have been the consolidation pattern of choice in July. There was a smaller one in the first half of last week as well. After the current wedge breakout, if AUD/USD pulls back and fails to break above 0.7450, we would have another breakout confirmation. This would first put the 0.7371 low on the year in sight, with risk of extending towards the 0.73 handle next week.

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