The EUR/AUD bullish breakout didn’t last long before the bears wrestled back control. Will the uptrend be able to regain control or will price action develop a larger reversal?
Price Charts and Technical Analysis
The EUR/AUD seems to have completed a wave 5 of wave A (purple) at the most recent high. This could indicate the end of the uptrend. The bearish correction is therefore probably a larger ABC (orange) pattern. The recent bullish bounce at the long-term moving averages probably finished the wave A of that ABC.
Now price is probably ready for a bullish bounce within the expected wave B (orange). A break above the resistance and 21 ema zone could confirm the push higher. A logical resistance spot is the 38.2% Fibonacci retracement level. A bearish descending wedge triangle pattern could emerge within the wave B before price is expected to break south towards the -27.2% Fibonacci target.
The analysis has been done with the indicators and template from the SWAT method (simple wave analysis and trading). For more daily technical and wave analysis and updates, sign-up to our newsletter
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