The EUR/AUD broke above the long-term key resistance trend line (orange line). This could indicate a major bullish reversal.
4 hour chart
The EUR/AUD was unable to break below the 100% Fibonacci support. This bounce could complete a wave 5 (purple). Recently price has made several higher lows, which could be a finished wave B (purple). The current breakout is pushing above the 144 ema close as part of a potential wave 123 (light purple).
The EUR/AUD recent tops are potential support (green lines) and could act as a bouncing spot for a wave 3. A 5 wave pattern could take price up towards the main target zone at 1.69. The Fibonacci resistance could complete the bullish ABC and a downtrend could restart.
The analysis has been done with the indicators and template from the SWAT method (simple wave analysis and trading). For more daily technical and wave analysis and updates, sign-up to our newsletter
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
More From FXEMPIRE:
- USD/CAD Daily Forecast – U.S. Dollar Loses Ground On Vaccine Hopes
- S&P 500 Price Forecast – Stock Markets Continue to Show Resiliency on Dips
- Gold Price Forecast – Critical Metals and Mining Update
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.