The AUDUSD has now pushed higher and formed an inside bar trigger signal after breaking out of a major daily resistance level. As the charts show you below; after breaking the major daily level that has been a really crucial resistance in recent months, price quickly pusher higher with strong momentum.
Price in recent times has been heavily restricted, trading in a very sideways and congested pattern of trading. This has made hunting entries in this market tough going simply because of how choppy price has been. There just has been no consistency in the movement of price. One moment price has chopped up and the next it has gone sideways of back lower.
In the last couple of weeks we have seen a strong burst of momentum higher, and now that price has broken and closed out of the major resistance we may get a bit of a continued move.
If price can continue the recent momentum higher it does have space to move into overhead. As the charts below show; if price can break the housing candle high of the inside bar, there is overhead space to move into and if the level can break from there, then we could see a new uptrend take place.
As I write this, price is attempting to break the high of the daily session which is also the high of the housing candle for the inside bar. Please see the third chart below if you are not sure what the housing candle is for an inside bar.
Basically the housing candle houses the inside bar which breaks out. We need to see price breakout of the housing candle to be triggered into any potential setup. You can read more about the inside bar in the trading lesson;
Trading the Price Action Inside Bar
Daily Chart – Zoomed Out – Overhead Space
Daily Chart – Next Major Resistance
Daily Chart – Inside Bar
Related Forex Trading Education
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