Triangle Breakdown Tested: Key Moment for AUD/USD

In today’s technical analysis, let’s see Australian dollar to American dollar, where a crucial thing is unfolding right now. As you can see, the price was moving inside a symmetric triangle pattern marked with black lines. At the end of the previous week, we had an escape to the downside from this formation, which in theory gives us a signal to sell. In theory — because Friday and Monday brought us a notable bullish reversal, and that sell signal now hangs on the edge.

Two scenarios are possible here. First one: the price manages to come back inside of the triangle. That would mean a cancellation of the breakout, it would classify as a false breakout, and it would generate a strong signal to go long, as buyers would regain full control of the structure.

Second scenario: the price fails to push higher and instead breaks below the blue support. A daily close below this level would be a confirmation of the negative sentiment, a confirmation that the breakout was legitimate, and it would activate a proper signal to go short with momentum. So this battle around the blue support will determine the next major move on AUD/USD.

Source: https://www.axiory.com/analytics/technical-analysis/triangle-breakdown-tested-key-moment-for-aud-usd