EUR/AUD Key Points
- EUR/AUD Descending channel on the hourly.
- Price formed low with a strong V shaped bounce.
- Now retesting short term resistance as support.
EUR/AUD Technical Analysis
Just flicking through my charts first thing this morning and this EUR/AUD setup flashed by in a couple of different places:
EUR/AUD H1:
You can interpret this as a descending channel breakout, or purely a horizontal support zone reactivation and bounce play.
They're both saying the same thing and that's the sort of confluence that we like to see in the setups we take.
The best part of this setup, for me anyway, is the way that price has made a V shape when forming the low.
This shows just how strong the buying was as really validates the level as support.
Now that price has pulled back into the first area of short term resistance turned support, we could see buyers continue to load up on the momentum train.
Best of probabilities to you.
Dane.
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