EUR/AUD Has Reached a Strong Resistance Level

After a significant move to the upside that lasted for more than a week EUR/AUD finally reached a significant resistance level at 1.4900 which coincides with both (MA)89 on the daily time-frame as well as the previous high. Understandably the pair bounced off that level. The question now is whether it will break above it and continue moving to the upside. I think that there will be a temporarily retracement at the very least, especially if we take into consideration the spinning top candlestick that has formed on the one-hour time-frame below the aforementioned resistance level. The target of the retracement will likely be 1.4800 although it’s possible to fall lower than that. On the other hand, if or when the pair continues rising and EUR/AUD breaks above the resistance at 1.4900 we will likely see a further move to the upside towards 1.4975 – 1.5000.