EUR/AUD Technical Analysis

• A bullish ABC zigzag pattern is expected.
• The main target for the bulls is the -61.8% Fibonacci level.
• A head and shoulders resistance level could cap the upside.
• A bearish bounce could take place at the target and resistance.

Daily Chart EUR/AUD

The EUR/AUD uptrend remains valid on the daily chart. Price action stayed above the key support trend line (green) and previous bottoms (blue box). What do we expect next?

1. The EUR/AUD has already made a bullish bounce at the support zone.
2. One more bullish swing is expected (green arrows) to retest the head and shoulders resistance zone (orange boxes).
3. A bearish bounce should take place at that resistance zone to test the support (green).
4. Price action could either breakout immediately or after a small retest of the support trend line (green).

4 Hour Chart EUR/AUD

The EUR/AUD on the 4 hour chart is showing a hefty roller coaster ride. The bullish price swings are immediately followed by equally strong bearish price swings:

1. The bullish bounce at the support zone (blue box) has probably created a wave A (pink).
2. The bearish pullback has not broken the recent bottom and remains choppy. This indicates a wave B (pink) retracement.
3. Price action is now expected to be in a wave C (pink). A break above resistance (grey box) confirms a bullish breakout (blue arrow).
4. A deeper retracement towards the 78.6% Fibonacci level indicates that price action is still in a wave B (pink).
5. The first target is the -27.2% Fibonacci level at 1.6125. A bull flag pattern (grey arrows) is expected.
6. The main target is the -61.8% Fibonacci level at 1.62.
7. A break below the bottom invalidates (red sign) the expected bullish ABC (pink).
8. A bearish reversal could take place at the 61.8% Fibonacci target and resistance zone (orange boxes).