Prior State: The AUD/USD has been falling for most of 2018 until a rally in early November brought the price outside of the down channel.
Current State: Price has been rangebound since the channel breakout between .7050 and .7325. While we have no trade open, we have theorized the possibility a base is forming, and higher prices are the next move.
Future Forecast: With higher prices in mind can we consider yesterday's extreme price movement a "Hammer"? In my opinion - No. The fact price recovered is Bullish, but without some volume behind price, all patterns mean nothing. The "flash crash" witnessed here doesn't represent enough value to factor into a pattern. I'm still looking for price to finish above .7050 before continuing to see the possibility of a Bullish move next.
Current State: Price has been rangebound since the channel breakout between .7050 and .7325. While we have no trade open, we have theorized the possibility a base is forming, and higher prices are the next move.
Future Forecast: With higher prices in mind can we consider yesterday's extreme price movement a "Hammer"? In my opinion - No. The fact price recovered is Bullish, but without some volume behind price, all patterns mean nothing. The "flash crash" witnessed here doesn't represent enough value to factor into a pattern. I'm still looking for price to finish above .7050 before continuing to see the possibility of a Bullish move next.