EUR/AUD in Bullish Mode Since a Double Bottom

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EUR/AUD in Bullish Mode Since a Double Bottom

After falling sharply from about 1.5330 to about 1.40, EUR/AUD found support and put in a double bottom. Let’s take a look at the technical developments since this double bottom.

The EUR/AUD turned sideways after holding at 1.40, then bullish after breaking above 1.4410. It extended higher this week to 1.49 before retreating. It is now testing the 1.46 handle.

The 1.4550-1.46 area contain key support factors including the 200-period SMA, a rising trendline, and the middle of a brief consolidation range last week.

The 1H chart is even more compelling for the bullish outlook in the short-term. There is some buying at 1.46 and if traders push EUR/AUD above 1.4710, the 1.4850-1.49 highs will be exposed with risk of the pair breaking higher.

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Fan Yang has been a professional forex trader and analyst since 2007. He specializes in technical analysis and has a Chartered Market Technician designation since 2011. He was the chief technical strategist at CMSFX He was also the founder and chief currency strategist at FXTimes Over the years, Fan has not only been a trader and analyst but also an educator. As a proponent of both technical and fundamental analysis in trading, Fan advocates simplicity and discipline as key factors in making trading decisions when faced with so many "clues" and "signals". Currently Fan Yang is the chief currency analyst and webinar instructor at forexminute.com.