A useful bullish break on the Aussie has played out. Will it hold?
I’d like to see a retest of the trendline, and ideally, a close that respects the 0.7150 level on the daily timeframe. That retest and accompanying bounce (If it happens) give me a nice place to put my stops and added confirmation that more upside is likely.
Traditionally, the double-bottom structure (marked by 1 and 2) is only officially a double-bottom once price breaks through the high formed between the two lows, i.e., up at point 3.
I think though that there is an opportunity to trade off this bullishness safely a little sooner, and that opportunity exists t about 1.2930 for me. Just like with AUDUSD, I’d like to see a retest from above and a bounce to load up a long.