On AUDUSD daily chart you can see a bearish channel. The last test of the lower limitation of formation on a round support level of 0.7350 led to set a formation of Double Inside Bar. Breaking the top of the formation was characterized by increased activity of bulls and led to correction of the recent declines. Also worth noting is yesterday’s session, which similarly led to a formation of Inside Bar. Its breaking took place at the beginning of the session. Currently price is around the minimum of yesterday’s candle. The theoretical probability of forming Outside Bar is small. It is worth looking at a chart with a lower time interval.
On the H1 chart you can see a bullish channel. Price most of the time oscillates in the middle of the previously mentioned formation. Currently the quotes are testing a round level of support at 0.7400. This area coincides with a band created by moving averages and lower band of the system. Response of the demand side in these areas is likely to lead to a growth impulse. Permanent breakout from the channel and a decline below last minimum will increase chances of further strong declines.
