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AUD/USD in a Tight Bullish Pennant on Daily Chart

AUD/USD is currently consolidating inside a perfect example of a bullish pennant pattern. The daily chart shows that after four days of rally, the currency pair stalled and is now trading in a narrowing range for five days in a row.

The pennant itself is marked with the yellow lines on the image below. The cyan line is my entry level in case of a bullish breakout. It is placed at 10% of the pennant’s width above the upper border. The green line is my potential take-profit level placed at 100% of the same distance. I will set my stop-loss to the low of the breakout candle or to the low of the preceding candle if the former trades mostly outside the pennant. I will ignore bearish breakouts from this pattern, as they provide unreliable trading signals. You can click on the chart to see a full-size screenshot:

AUD/USD - Bullish Pennant Pattern on Daily Chart as of 2017-12-21

You can download my MetaTrader 4 chart template for this AUD/USD pattern. It can be traded using my free Chart Pattern Helper EA.

Update 2017-12-21 14:06 GMT: It did not take long for the Aussie to break out of the pennant. It triggered my buy stop order just half an hour ago at 0.76808 with a stop-loss at 0.76533 and a take-profit at 0.77459. It looks like it will not take long for the pair to either hit the take-profit or bounce back to stop-loss.

AUD/USD - Bullish Pennant Pattern on Daily Chart as of 2017-12-21 - Post-Entry Screenshot

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

Posted on Forex blog. Click Here For Original Source Of The Article

About Louie Lewis

Louie Lewis
Successful forex trading starts with you first. Then comes the actual strategies and techniques. I have been involved with forex and forex trading for a few years now. It is a wonderful way to build wealth. The learning never stops and I want to help others along their journey into this wonderful market of opportunity.

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