By the end of 2014 the EUR/AUD pair declined rapidly off 1.5330 reaching down to 1.3970 where bullish recovery was manifested.
Recently the EUR/AUD pair has been trending upwards within the depicted bullish channel until the price level of 1.4800 was reached few weeks ago.
The price level of 1.4800 corresponds to the 61.8% Fibonacci level of the recent bearish swing. Around it a DOUBLE-TOP bearish reversal pattern is being expressed.
Confirmation of the reversal pattern requires DAILY fixation below the price level of 1.4500, which corresponds to the lower limit of the daily channel as well.
Yesterday daily candlestick came as a shooting star indicating an upcoming bearish momentum.
If daily closure persisted below 1.4500, initial projection target would be located around 1.4300 and then 1.4270.
Trade Recommendation :
DAILY closure below 1.4500 indicates a low-risk SELL entry can be taken. TP levels would be located around 1.4300 and 1.4270.
The material has been provided by InstaForex Company – www.instaforex.com