The AUDUSD daily chart has been flagged as a ‘no fly zone’ for us price action traders for the last few weeks. Check out the consolidation it’s been quite a mess. The general rule of thumb is – the longer the consolidation period, the more powerful the breakout. The market has dropped narrow range indecision candles, demonstrating the intensity of the congestion here.
Last session the market made a relatively decent push upwards and close pretty much on the top resistive containment layer. If the market breaches the previous candle high this session, we could see a nice breakout to the high side. There is some important news coming out from the FED this session, so expect a volatility injection.
The game plan here is to wait for a bullish breakout and set the chart up for higher prices, then buy price action signals on corrections.