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AUD/USD: Double Top and breakout at the neckline, What is next?


AUD/USD produced a long bullish candle on the daily chart yesterday. However, the H1 chart shows that the price has had a rejection at a double top resistance and headed towards the South. The price has made a breakout at the neckline. If it goes back to the breakout level and produces a bearish reversal candle, the sellers may get an opportunity to go short in the pair.

Chart 1 AUD/USD H1 Chart

The chart shows that the price had a bounce at the level of 0.66765 and made a bearish move. Upon having a bounce, it headed towards the North and had a rejection again. At the second rejection, the price made a strong bearish move and breached 0.66320. The price may make an upward correction and go back to the breakout level. If the level produces a bearish reversal candle, the sellers may trigger a short entry below 0.66320.

Trade Summary:

Entry: Sell below 0.66320
Stop Loss: Above 0.66745
Take Profit 1: 0.65865
Take Profit 2: 0.65755
Take Profit 3: 0.65570

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