EUR/AUD Is Bearish

EUR/AUD tested the resistance at 1.5885 – 1.5900 over the course of about a month, forming multiple spinning top candlesticks on the weekly time-frame below that level. Last week the pair finally bounced off from the aforementioned resistance level and continued falling. It is currently testing the support at 1.5615 – 1.5600 and considering how bearish the pair is it will likely break out below it. If it does next target is likely at 1.5400. A breakout below that level could lead to a further move to the downside towards the last low which is at 1.5275, and which also coincides with the (MA)89 indicator on the weekly time-frame.

EUR/AUD Is Very Bullish

After a brief and choppy retracement that formed after EUR/AUD bounced off from the resistance at 1.5830 the pair also bounced off from the support at 1.5715. It could not even reach the (MA)89 indicator on the daily time-frame at 1.5665 but rather formed a doji candlesticks and an inverted hammer candlestick on the same time-frame at the aforementioned support and started moving sharply to the upside. The pair has already broken out above the last high at 1.5825 and it continues rising, so the move to the upside is very likely to continue. If it does, next target will likely be at 1.6000, and if it breaks out above that level it could rise towards the next high, which is at 1.6140.

EUR/AUD May Start Falling

EUR/AUD has been moving to the upside for weeks but the bullish trend seems finally exhausted as the pair formed a distinct double top on the four-hour time-frame at 1.5755 as well as a pair of hanging man candlesticks on the daily time-frame below that level. Both formations are a good signal for a move to the downside, even a possible trend reversal. If there is, indeed, such a move to the downside, the closest target will likely be at 1.5580, which coincides with the (MA)89 indicator on the four-hour time-frame. If the pair breaks out below that level too it will likely continue falling towards 1.5500 at least.