On February 13, the bulls expressed a bullish breakout above the upper limit of the previous bearish channel. This took place when the bears showed obvious weakness.
Since then, the EUR/AUD pair has been moving sideways with a slightly bullish tendency. This movement was maintained within the depicted bullish channel.
On March 12, the bulls failed to establish an ascending top. Instead, a double-top reversal pattern was established at 1.5500. The neckline is located at 1.5200-1.5170.
Breakdown of this neckline will confirm the pattern clearing the way towards the projection target which is roughly located at 1.4950.
Breakdown of price zone 1.5200-1.5170 means breakdown of the lower limit of the bullish channel as well. That's why, a quick bearish swing is expected to follow through.
On the other hand, failure of the bears to fixate below 1.5170 will bring the pair back within the current congestion zone between 1.5200 and 1.5480 giving more time for sideway movements.
Today, the bears failed to keep their gains against the bulls. The pair retraced quickly from 1.5200 getting back again inside the bullish channel towards 1.5280.
On the other hand, bearish rejection is also expressed at 1.5280 expressing few inverted hammer 4H candlesticks.
It's advised to wait until this indecision phase comes to an end with a breakout above 1.5300 or below 1.5200 then catch a position in the same direction of breakout.
The material has been provided by InstaForex Company - www.instaforex.com
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