By breaking down the price level of 1.5175, the Double Top pattern could not only achieve its projection target at 1.4820-1.4800, but it also confirmed a bigger Head and Shoulders pattern.
The bears managed to break down to 1.4950, then 1.4750 corresponding to 50% and 61.8% Fibonacci levels, respectively.
Previously, a bullish pullback was initiated off 1.4670 ( around 61.8% Fibonacci ). Two bullish spikes above 1.4950 (50% Fibonacci level on the daily chart) took place. However, the bulls failed to pursue the bullish breakout leading to failure of the bullish breakout attempt.
Moreover, Intraday support zone around 1.4750-1.4660 failed to provide enough support for the pair. Instead, bearish breakdown took place pushing towards 1.4500 then 1.4400.
Since then, the EUR/AUD pair has been moving within the depicted RED channel in an attempt to reach the lower limit located roughly around 1.4320.
On the other hand, as expected, the price zone around 1.4375-1.4420 showed bullish recovery which took place last week after such a strong bearish move.
Note that the failure of the bulls to provide enough buying pressure to pause the ongoing bearish momentum at the current levels will probably expose 1.4300 for retesting.
Moreover, there's a possible double-bottom reversal pattern being expressed on the 4H chart. Reversal confirmation needs 4H fixation above 1.4550 ( outside the bearish channel as well ). This exposes price levels around 1.4650 initially.
The material has been provided by InstaForex Company - www.instaforex.com
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