Today I will be updating a post that Sophia wrote earlier this week about the Aud/Usd. Sophia made a great analysis of the pair and now we are at a key stage. The Aud/Usd has moved into consolidation period and I think that the formation is looking to make a move. There are two potential moves happening now:
1.) The pair is forming a bear flag getting ready to plunge to new lows.
2. ) The pair is consolidation forming a bottom getting ready to bounce.
Now I know you are thinking this guy is not helping me, he is saying it is going to go up or down
I know I can put out some amazingly wise insights (lol) I am kidding.
So anyways the forex analysis is the truth, we donít know what is going to happen but the point is that it is in a position to make a move. If you look at the daily chart of the Aud/Usd you can see the long drop and now the consolidation. The current daily is up so if the next daily candle closes today that is a signal that we could be starting to get a pull back. Based on the daily chart I think we could see a target of around 87.00.
If the daily today does not close higher than the close from yesterday the pair could still be deciding which way to go. I recommend watching the close on the daily chart which happens at 5pm Est time. When trading always use a stop loss and calculate the proper risk management for your account. This analysis is provided to assist the forex trading community here at Winners Edge Trading to make informed trading decisions.