The last four trading days (this whole week) the AD- US dollar pair has been trading within an interesting narrow diapason. It is interesting because it reminds a forming flag, the breakdown of which will mean the continuation of ascending tendency. However, the character of daily candlesticks points at the weakness of ascending tendency within a trading day and all these with the background of perfect growth of petroleum on all markets (the Australian dollar correlates towards petroleum and gold).
Double interpretation of current situation defines well the necessity of protection or the closing of current long positions on AUDUSD pair.
The entry to purchases must be recommenced with flag breakdown upwards.
However, we assume that the pair is preparing for a small correction after the growth, which is proved by divergence in the direction of petroleum market and the Australian dollar quotations. That is why it is logical to sell the pair with descending lower than 1.0520 with the aim at 1.0450.Social button for Joomla