AUD/USD Megaphone Pattern Marks 2 Way Trading Possible

January 03, 2017 10:00

The RBA wants the AUD/USD currency below 0.75. If we take a look at last 2 weeks we can see that support has been established within the 0.7150 zone. Looking at our weekly chart we can see that 0.7150 has served as historical support (May-June) and now it is the bottom of megaphone pattern. POC for long trades comes within 0.7150-65 zone (megaphone bottom, L4, historical support) while the POC for short trades is 0.7260-80 zone (H4, megaphone top, 38.2, bearish order block). Targets for both shorts and longs is the pivot point 0.7210.Megaphone aka Broadening top is a tricky pattern but since we can identify POC zones, it should be easier for us to spot trading opportunities.

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