AUD/USD W pattern completion idea

5 בינו׳ 2021

AUD/USD has been bullish for almost all 2020, and from a weekly perspective it formed a W pattern when retesting the broken multi-year resistance trendline. Usually after a W formation I expect the price to go up and retrace to retest the previous resistance as new support. Also the price failed already twice to break the 0.774 ceiling. therefore I expect it to fall down in the next weeks until it hits the 38.2% level of the fibonacci taken on the impulse. But I wouldn't be surprised if the price goes further down around the 61.8% fibonacci level where there is also a confluence of previous resistance.