AUDUSD has been on a bullish rampage for the last 60 days or so. A look at the weekly time frame offers us a glimpse of a Wammie (double bottom) having been formed at the 0.70000 key psychological level. As such, I do expect price to be primarily bullish for the second quarter of 2022. However, currently, price has been catapulted to current highs from the 0.72850 key level to today's level. The next key daily level to the upside is 0.74500. Price has previously (looking left) been pushed to the 0.70000 lows off of this key daily level of resistance. As such, I do have an expectation for price to tap into this level then have a rejection to the downside.
That said, the 0.72850 psychological level was broken but not retested. In order for price to push higher, it does need a support level and this is the strongest level created most recently as it was the former resistance level.
Thus, probably for this week, I shall be seeking a shift in structure with sells to culminate at the 0.72850 target level. This is around 160 pips from 0.74500 key level.
Lastly, we do expect the neckline of a double bottom to be retested. The neckline on the weekly time frame is 0.72730. This makes the 0.72850 target quite a reasonable TP level.
That said, the 0.72850 psychological level was broken but not retested. In order for price to push higher, it does need a support level and this is the strongest level created most recently as it was the former resistance level.
Thus, probably for this week, I shall be seeking a shift in structure with sells to culminate at the 0.72850 target level. This is around 160 pips from 0.74500 key level.
Lastly, we do expect the neckline of a double bottom to be retested. The neckline on the weekly time frame is 0.72730. This makes the 0.72850 target quite a reasonable TP level.
