Aussie dollar has seen a downward movement of almost 800 pips since last seven weeks as can be found in the weekly chart below. Now, from the price action trader's point of view, it is due for correction. Let us see how do I interpret the interpretation based on weekly, daily and monthly charts respectively.
AUD/USD weekly chart
AUD/USD daily chart : As we can observe, last Thursday was an inside day and on Friday, initially the price breaks the low of the inside bar and then comes back strongly…