Forex: AUD/USD builds 20-EMA bullish pattern; holding 1.0350 key

After the latest observations about a potential trend-shifting event , which had its follow-up yesterday once the RBA minutes was out of the way, the AUD/USD continued its course northbound, reaching the contention area 1.0360/70, where price has temporarily stalled.

The rise off 1.0270 Feb 18 lows comes through a non-volatile run, in which the consistency of bids has been remarkable. From an hourly perspective, there are twice as many bull candles as bears, excluding 3 dojis around the London open. Moreover, if one drills down to the 30m chart, the upward run has been building a strong correlation with its 20-EMA, providing short-term long trading opportunities on any retest of the indicator. So far, the pattern has played successfully for over 6 times.

Traders should note this kind of patterns have higher chances of continue working in non-volatile environments, as it suggests buyers find absence of sellers to dispute the run-up. At present, the price (around 1.0350) sits near by the 20-EMA, an area where in the past 24 hours price has been rejected upwards in every single test. A clean break above 1.0370, where the 20-EMA on the daily chart crosses, should allow further upside resolutions to levels, potentially, as high as 1.0450, Feb 5 peak. A break and close below 1.0350 on a 30 minute candle would invalidate the bullish pattern.