Trading Inside Bars –under this heading you will find analysis made on basis of one of the most known Price Action formation – Inside (Outside) Bar. Statistics show that best results gives breakout from Inside Bar formation on Daily chart, so mainly this time frame charts will be analysed.
EURAUD -Outside Bar
On this pair, today’s candle “covered” yesterday’s creating a bearish formation – Outside Bar or bearish engulfing … however it’s called – the important are implications from this formation and what this pair is gonna do in near future.
We can expect declines in my opinion … but the situation is quite unclear as to the extent of this movement. We are quite close to an important 1.4880 level recently broken, which now can be used as a strong support, especially that there is a trend line in the vicinity which, together with 1.4880 level, creates a confluence point, further strengthening this level of support. However, if this support gives up then we can count on further declines to 1.4750-20.
Dargo, 23:30 GMT 18.05.2017