aud/usd all set up to bounce 250 pips soon (9th August, 2022)

attached is the daily chart of aud/usd.

Rationale:

Technical View:

aud/usd has been working inside the falling wedge & falling channel for almost an year now. currently prices were under pressure & coming to the support of the falling wedge & channel.

from the support, the pair has now formed the flag pattern in the middle of the correction upwards which is indicating the .72200 is coming in couple of weeks or so.

the break of flag & falling wedge resistance will boost the upwards momentum & will eventually turn the signals as strong buy in near term.

RBA is expected to raise interest rates further by 50bps & fed after 2 q/q negative gdp , will cool down the aggressive hiking cycle, indicating the much needed push for the pair.

Plan : 

Buy the pair between .69450-.69700 for the tgt of .72400.

Thank You,

Sanjay Galani, CMT, CFTe