EUR/AUD flirts with a strong resistance area after jumping above some near-term obstacles. The pair have shown reversal signals, but we still need confirmation before going long.
The price action indicated that the downside movement is over and that the pair may develop a new leg higher. The volatility is high in the short term, that’s why we have to be careful when deciding to go long.
EUR/AUD H4 Chart Analysis!
EUR/AUD escaped from a minor triangle and now is located above a downtrend line and right below 23.6% and under the median line (ML). Technically, the pair was somehow expected to increase after breaking above the major black downtrend line.
The breakout above the short-term downtrend line and through R1 (1.5551) was validated by a retest. Now, we need a valid breakout above the 1.5610, 23.6%, and above the median line (ML) to consider going long.
Conclusion!
EUR/AUD is trading around a strong resistance area. So, we have to wait for the rate to take out the immediate resistance levels before taking action.
Note: Learn2Trade.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results
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