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AUD/USD Bouncing Off of Double Top Resistance on Daily

May 17, 2020 (Last updated on May 21, 2020) by

The long-term correction on the AUD/USD daily chart that started back in March this year follows a 2-year bearish trend on this currency pair. The correction seems to be over now as it has hit the double top resistance with the Aussie ready to go further down.

On the chart below, you can see the neckline and the two tops marked with the yellow lines. The cyan line marks my pending entry location (placed at 10% of the pattern’s height below the neckline). I will set my take-profit to where the green line is in case of a breakout. The line is placed at 100% of the pattern’s height below the neckline. I will set my stop-loss to the high of the breakout candle or to the high of the preceding one if the breakout candle is trading mostly below the neckline. I won’t trade upside breakouts from this double top pattern. You can click on the chart to see a larger version:

AUD/USD - Double Top Pattern on Daily Chart as of 2020-05-17

I have built this chart using the ChannelPattern script. You can download my MetaTrader 4 chart template for this AUD/USD pattern. You can trade it using my free Chart Pattern Helper EA.

Update 2020-05-21: The double top pattern has been invalidated by the bullish breakout (looks like it will now form a rising wedge). I have now cancelled my pending order:

AUD/USD - Double Top Pattern on Daily Chart as of 2020-05-21 - Post-Cancellation Screenshot

If you have any questions or comments regarding this double top on the AUD/USD chart, please feel free to submit them via the form below.

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