I wrote an article earlier this morning warning traders to be wary of a possible ‘Bear Flag’ setting up on the A/U as price consolidates above key 0.865 support.
A/U 4hr: the Aussie is still trading within this Flag pattern for the time being:
I had also noted that the Aussie was testing the 4hr Ichimoku Cloud and this is worth monitoring as it continues to try moving up through this resistance. There is an obvious ‘Double Bottom’ trying to form up here as well and the ‘neck line’ of this possible pattern lines up quite well with the top of the 4 hr Cloud for added confluence. This ‘neck line’ level comes in at 0.883 and any break and hold above this levelÂ might offer a trade opportunity here. I do have a new TC ‘long’ signal trying to form on the A/U and this may print by the 8pm candle close but, if not and bullish momentum continues, then it might print byÂ the 12 midnight candle:
A/U 4hr Cloud:Â
Thus, as well as watching the ‘Flag’ trend lines and the 0.865 support level, keep an eye out for any break and hold aboveÂ the 4hr Cloud as this would help to support a bullish 4hr ‘Double Bottom’.Â