AUDUSD since 2011 is moving in a downward trend, and the last six months there is a movement in the channel. On Monday a strong downward candle AUDUSD has tested the lower limit of the channel. At the lower band bulls appeared which is evident on the chart in the form of a long lower shadow. At the moment the price is in the middle of the channel however this move is more preparation before further falls rather than attempt of a long rebound.

AUDUSD-D1

 Interval H1

After Monday’s fall rebound was quickly, which abolished the 61.8% downward movement. For two days AUDUSD moves in the flag and the maximum level, which should stop the upward movement is 0.7240. The flag is a trend continuation formation so on AUDUSD is recommended for short position.

AUDUSD-H1

FXGROW_ang

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