Since last February, 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 exposed price level of 1.4750 ( 61.8% Fibonacci ).
On the long-term prospective, projection targets of the H&S reversal pattern are projected towards 1.4350 roughly.
Daily closure above 1.4740 will probably hinder further bearish progression giving some time for sideway consolidation at least for retesting of 1.4945 (50% Fibonacci) which is a prominent resistance now.
On the other hand, daily closure below 1.4740 will open the way towards 1.4350 as a projection target for the long-term bearish pattern.
The material has been provided by InstaForex Company - www.instaforex.com
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