By breaking down the price level of 1.5050, the bears confirmed a long-term Head and Shoulders bearish reversal pattern.
The bears managed to break down to 1.4950, then 1.4730 corresponding to 50% and 61.8% Fibonacci levels.
Two bullish spikes were expressed above 1.4950 (50% Fibonacci level on the daily chart) took place. However, the bulls failed to pursue the bullish breakout leading to failure of the bullish breakout attempt.
Since then, the EUR/AUD pair has been moving within the depicted RED channel in an attempt to reach the lower limit located roughly around 1.3880.However, the current prices being tested correspond to a prominent bottom (since November 2013). There’s a high probability of bullish recovery to be witnessed around there.
Note that failure of the bulls to provide enough buying pressure at the current levels, will probably expose 1.3900-1.3860 to be re-tested.
Mohamed Samy is taking part in the “Analyst of the Year” award organized by MT5.com portal. If you like his article, please vote for him.
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Performed by Mohamed Samy, Analytical expert InstaForex Group © 2007-2014 |
EUR/AUD intraday technical levels and trading recommendations for August 29, 2014
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