Trading Inside Bars –under this heading you will find analysis made on basis of one of the most known Price Action formation – Inside Bar. Statistics show that best results gives breakout from Inside Bar formation on Daily chart, so mainly this time frame charts will be analysed.
Yesterday on AUDUSD appeared an Inside Bar. During the Asian session, price fell to 0.7415, creating a new local minimum and breaking the lower limit of IB. In European session there was a complete change of sentiment, price began to rise and the daily candle closed above the upper limit of IB. If the morning minimum proves to be a false breakout, then we can expect increases.
Closest resistance zone is 0.7495-0.7515. The next resistance is around 0.7550. However, if market returns down and fall in line with local downward trend, the nearest support is at 0.7410 and the next 0.7350.