AUD/USD – Trade Continuation & Capitalizing on the Trend

 📌 Attached: Updated Chart Highlighting the Morning Star Entry in the Hourly Timeframe

Reviewing the Forecast & Market Reaction

In our previous analysis, we identified a bullish reversal setup in AUD/USD, marked by the unique ‘Harmonic Crown’ pattern—a fusion of a Bullish Head & Shoulders and a Bullish Bat Harmonic pattern. The anticipated reversal has now materialized, confirming the strength of the setup and providing a prime opportunity to enter a continuation trade.

As expected, price action respected the confluence zone, leading to a decisive bullish move. This validates our initial outlook and highlights the power of integrating classical and harmonic analysis for precision trading.

New Trade Setup: Hourly Morning Star Formation

With the trend now established, we shift focus to an optimal entry point within the prevailing bullish momentum. The hourly timeframe has printed a Morning Star candlestick formation—a strong bullish reversal pattern—signaling the perfect moment to enter the trade.

✅ Why This Trade Setup?

• The Morning Star pattern confirms the exhaustion of short-term selling pressure, reinforcing the trend continuation.
• It aligns with the broader bullish structure initiated by the ‘Harmonic Crown’ pattern.
• Volume analysis supports the breakout, with rising buying interest.
• The risk-reward ratio remains highly favorable, with defined stop-loss levels below the pattern’s low.

Trade Management & Targets

📌 Entry Point: After confirmation of the Morning Star pattern in the hourly timeframe.
📌 Stop-Loss: Below the low of the pattern to manage risk efficiently.
📌 Profit Targets: Key resistance zones aligned with prior supply areas and Fibonacci retracements.
📌 Risk Factors: Monitoring macroeconomic data and USD strength to assess potential headwinds.

Legal Disclaimer

This analysis is for informational and educational purposes only and does not constitute financial advice. The author is not a licensed financial advisor, portfolio manager, or investment consultant. Trading carries inherent risks, including potential capital loss. Past performance does not guarantee future results. Investors should conduct their own research or consult a certified professional before making financial decisions. The author assumes no responsibility for financial losses resulting from reliance on this analysis.

🚀 Will the momentum hold and push AUD/USD toward higher resistance levels? Stay tuned for further trade updates! 📈