On June 29, after forming a double bottom reversal pattern
near 1.37, EUR/AUD started approaching higher lows and higher highs. That signals about
the potential change in trend in the mid and long terms.
EUR/UAD found the resistance near R2 (1.4755),
which is 23.6% Fibonacci level applied to a breakout of the descending
channel. Currently, it looks like EUR/AUD is finishing the corrective wave down
and might continue ist long-term growth. The price rejected the S1 (1.4386), 200D
moving average and ascending channel confirming the uptrend.
Consider buying EUR/AUD near 1.4386, which is S1 support, with targets at R2 (1.4755) or R3 (1.5085). Althoughthe pair could get slightly lower,
only a daily close below S2 (1.4221) would invalidate this analysis and send
the pair down to the area around 1.37.
Support: 1.4386, 1.4221
Resistance: 1.4551, 1.4755, 1.5085
The material has been provided by InstaForex Company – www.instaforex.com