- AUD/USD bulls looking for a run to the 0.7350s.
- W-formaiton is a risk as a reversion pattern.
AUD/USD is in the process of forming a W-formation reversion pattern. This should indicate to bull's caution in buying the market. The W-formation pattern is a high completion pattern that is expected to see the price reverse back to test the neckline of the formation subsequent to an initial breakout to the upside.
AUD/USD daily chart
As the chart illustrates above, there are prospects of the price moving higher into resistance around 0.7350 where it would be expected to fail on initial attempts, at least not until the neckline of the formation is first retested as support near 0.7295.
With that being said, a break of resistance will invalidate the bearish prospects and leave scope for a higher high, or at least a test of the daily highs near to 0.74 the figure.
