AUDUSD bears to make way for bullish charge

EARLIER this year in January, the AUDUSD currency pair was hit by the flash crash and plunged to its lowest levels since the global financial crisis. However, within the day, prices snapped back to normal levels and ushered in a bullish momentum which pushed the AUDUSD to the 0.7279 levels within the span of a month.

Since then, prices continued to range lower and at present seem to be sitting at the bottom of a falling wedge formation, indicating that a move higher may be imminent as it reverts to the mean.

The first key factor, which establishes 0.6861 as a bottom, is that prices have coincided with the bottom wedge line for the third time, and this validates the strength of the support along the horizontal plane.