What I see
On the H4 chart, AUD/USD broke the neckline of a double bottom at 0.70129 and entered the resistance zone between 0.70037 and 0.70425. Price is now at 0.70182 and has been stalling inside the zone for several candles.
Key levels
- Resistance: 0.70037 - 0.70425
- Neckline: 0.70129
- Possible pullback area: 0.6982 - 0.6948 (38%-61% Fibonacci of the prior move)
- Target on a breakout: 0.7100
My plan
If price closes above the resistance, I expect a move toward 0.7100.
Before such a breakout, a drop into the 0.6982 - 0.6948 area is still possible. There I would watch how price reacts at the Fibonacci levels and whether the double bottom holds. While price stays inside the resistance zone, I will wait for a candle close outside of it.