Recently AUDUSD pair moves in range between resistance 0.7750 and support at 0.7160. Additionally around 0.7326 we have another support where low from May this year is located.

As we can see below on weekly chart , price action was entirely in trading range of last week. So we can talk about inside bar formation from which direction of breakout can give us idea about future movements on the pair. In case of successful breaking of the mother candle high (0.7635) we would expect continuation of lasting for 6 weeks bullish movement . The target then will be the upper limit of consolidation at 0.7750.On the other hand, if the IB breakout is thru bottom, then we can expect a second test of the trend line shown in the chart. Next support should provide horizontal level of 0.7326.

Leave us a comment!

Ransquawk