After yesterday’s impressive move up, price action on the AUDUSD took a breather. We had an inside bar form today as a sign that the market is cooling off from yesterday’s move. Whether this inside bar is a signal that price will continue to the .942 area has yet to be seen.
Having said that, in this scenario a break higher is more likely than a break lower. The question becomes, will price retrace further before the rally continues? We should know the answer in about an hour 😉
The USDCHF also formed an inside bar today. It should be noted that there are recent lows from March that may cap a further move down, at least temporarily.
