The AUD/USD looks like to be setting up for some sort of trade next week. Have a look at the chart of this pair on the 4 hr setting. It looks like a bull flag set up. Bull flags, as there name suggests, are bullish technical patterns. The technical theory would have that the possible further up move might be equal to the length of the original flag pole. This is about 400 pips! The A/U is certainly one to watch next week! (see chart: I've tried to shade it to indicate the flag pattern).
The other encouraging sign with this pair is that the ADX is below the 20 level. This will make it easier to spot any new trend.
Thus, either way,a break out up or break out down, the ADX should reveal when the momentum on this trend picks up. That's when I'll get on board!
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