This bar not only engulfed the previous bar but also made a 1 year low which itself was barely above a 2 year low.
The reaction off this level this morning has been strong and impulsive.
Looking at the daily chart of AUDUSD over the past 3 years below, we can see how the price has entered a 3 year old demand zone from which it has risen several times.
If the high of this morning is broken to the upside, we can drop to the 15 minute chart and look for long entries off inside and engulfing bar breaks in a MTFM Strategy trade.
Bear in mind that most of these trades are losers, however we have a higher than usual probability here of a move of several hundred pips if we do get a runner i.e. a huge reward to risk ratio.
The high broke immediately, time to wait for an inside / engulfing bar on the 15 minute chart. A pullback would be nice.
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