Is it EUR/AUD getting ready for more bullish moves?

After brief consolidation the EUR/AUD’s rise from 1.5976 resumed and intraday bias is back on the upside. Friday’s daily candle came out as a bullish Marubozu candle, which indicates that the buyers are in control. Additionally, the today breakout on daily chart above Friday’s high may push the price upside with good bullish momentum.

But the H4 chart shows that after being very bullish, the price retreated a little bit. The pair may find resistance at the level of 1.6310 (24th October's high). Further rally should be seen to 1.6432 resistance first. Sustained move above this level will pave the way to retest 1.6787 high.

If the downward correction keeps, it may come up to 1.6202 to find its support. A clear breakout below 1.6202 minor support will turn bias back to the downside for testing 1.6150 (100-day SMA on H4), followed by 1.5976 key support zone. The H4 RSI was in overbought area which is indicative that the underlying momentum is positive for the AUD relative to the EUR.

In the bigger picture, as long as 1.5895 support (the triple bottom since July) holds, outlook remains bullish.

We prefer upside momentum and buying opportunities on the declines. So, in short-term look for Sell at the current level with TP at 1.6205 and Stop Loss around 1.6305. On daily chart waiting the long positions to hit the target 1.6435.

What's your strategy for that pair?

Trade fechado manualmente:

Sell position closed at 1.6313. Look for new buying opportunities with a target at 1.6435.