The beginning of the year is not a successful one for the Australian dollar. Since December 30th it has lost to the American dollar 370p. On Friday last week the AUDUSD pair set the minimum at 0.6660, last seen 11 years ago.
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Monday was slightly upward and the daily candle together with Monday’s formed an inside bar formation. The range of formation is min -0.6660, max – 0.6735.
Formations that are formed on important minima or maxima usually have more weight than those that do not establish extremes.
In case of an effective breakout from inside the bar it is worthwhile to observe MACD behaviour. If the oscillator and price will move in the same direction, it may be a confirmation that the breakout is permanent and the pair will continue moving in that direction for the next few sessions. In the case of a breaking the top, the demands target may be 0.6800. In the case of a bottom breaking it is difficult to determine where the bottom is…;)
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