17 July AUDUSD technical patterns analysis

AUDUSD is about completing some popular price patterns used by technical traders. The following 17 July AUDUSD technical pattern analysis discusses about popular price chart patterns emerging on the short and medium time frame of the Aussie.

AUDUSD is about completing a BAT harmonic pattern on the 15 min time frame. Despite the current bearish rush, price might make some moves upside if this pattern would play out. The chart below shows the emerging BAT pattern.

AUDUSD 15 Mins: Emerging Bat pattern at 0.7378-0.7376

The pattern started from 0.7567 with a bullish move to complete the XA leg at 0.744. AB leg corrects XA at 0.57% ( Bat pattern requires less than 61.8%). The third leg BC corrects AB at 91.4% which also goes well with BAT pattern. The last leg CD should end at 88.6% Fib-retracement of XA (0.7376 in this case) and 1.618% (0.7376 in this case)-2.618% Fib extension of BC. The price reversal zone is thereby set at 0.7376-0.7379 where the BAT pattern would complete. Given that the reversal zone is close to 0.7567, the pattern could accommodate a fast dip below it before price reacts but price must be contained above 07567. A strong fast dip below the reversal zone would invalidate this pattern.

Is there any other price technical pattern we could spot? Let’s look at the higher time frame.

AUDUSD H4: Inverted Head and Shoulder Pattern?

There is an emergence of an Inverted Head and Shoulder pattern on the H4 Aussie chart. The second shoulder is more heaby and taking more time than the first. The neckline is a rising one. To validate this pattern, price should be contained above 0.7350 and break above 0.7442. This is not one of the finest HnS pattern but it’s one nonetheless when price validate it. If price would validate and confirm this pattern, a strong rally should lead price above the neckline toward 0.7675. How likely is this? Time will tell.

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