The weekly chart illustrates a 10-month bullish swing that extended between price levels of 1.2200 and 1.5800.
For several times, Fibo level 50% of the same bullish swing has provided significant support for the EUR/AUD pair.
Successive signs of a bearish pressure have been shown on the chart. However, the bullish breakout above the depicted downtrend was executed on April 30.
For a few weeks, the EUR/AUD pair has been trapped between the levels of 1.4000 and 1.4350 (Prominent daily resistance corresponding to previous daily tops).
If price zone of 1.4350-1.4400 remains defended by bears, a bearish pullback should be expected towards 1.4000 shortly after.
On the other hand, daily fixation above 1.4350 (range breakout) is likely to pause the long-term bearish tendency of the market.
It exposes higher price levels such as 1.4444 and 1.4550 for a quick visit.
The material has been provided by InstaForex Company – www.instaforex.com