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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