AUDUSD carves right shoulder at 0.7080/90 levels?

The AUDUSD pair staged an impressive rally yesterday printing highs at 0.7148 levels before pulling back lower. Please note that in this process, an engulfing bullish candlestick pattern was produced on the 4H chart presented here, indicating a potential reversal. Looking at the wave counts, the Aussie Dollar had produced an impulse rally between 0.7020 and 0.7340 levels earlier; which was followed by an expected flat corrective drop that might have terminated as Wave 2 around 0.7087 levels recently. Furthermore, prices have bounced higher from a strong convergence point of fibonacci 0.786 support of the impulse rally, backside of the resistance turned support trend line and a potential right shoulder of a H&S potential. If the above structure should hold, we could see prices staying above 0.7087 levels going forward. Overall, bullish momentum could stay until prices remain above 0.7020 levels.


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