Since February 4, the EUR/AUD pair has been moving sideways with a slightly bullish tendency. This movement was maintained above the depicted uptrend line.
On March 12, the bulls failed to establish an ascending top. Instead, a double-top reversal pattern was established at 1.5500. The neckline was located at 1.5200-1.5170.
Success of the Double Top pattern not only achieved its projection target at 1.4820-1.4800, but confirmed a bigger Head and Shoulders pattern as well.
The bears managed to break down 1.4950 corresponding to 50% Fibonacci level last week (the nearest Support level). This exposes price level of 1.4750 ( 61.8% Fibonacci ) to be tested shortly after.
On Friday, the pair dipped at 1.4785 when bullish recovery took place to push again towards 1.4950-1.4990 (also previous prominent bottom is located there).
Price zone of 1.4950-1.4990 should keep price below in order to pursue the ongoing bearish momentum. Otherwise, sideway consolidations may be prolonged.
On the long-term prospective, projection targets of the H&S reversal pattern are projected towards 1.4350 roughly.
The material has been provided by InstaForex Company - www.instaforex.com
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