The ascending trendline is almost broken
EUR has been gaining power against AUD since 29th of September. This has caused the price line to descend within a bearish channel. Currently the price has broken above the trendline and different indicators are issuing trend reversal signals.
• Chart time-zone is UTC (+03:00)
• Candles’ time-frame is 4h.
Currently the price is on about 1.5655 and is touching the top of the descending channel. The support level lays at about 1.5600 which has been able to pump the price up several times in the past. A strong resistance exists at 1.575 which is level 0.236 of the Fibonacci retracement and also the price has reacted to this level multiple times. RSI indicator is showing positive diversion. Bulls can target 1.575 as the first target of the ascending wave, if the price can break out of the descending wave. The next target for this pair would be 1.585 . At any point, breaking below 4.56 would trigger a bearish trend. In this case bears can target 1.554 as their first TP and 1.542 as the next one.
• DISCLAIMER: Please note that the above analysis is not an investment suggestion by “Capitalcore Ltd”. This post has been published only for educational purposes.