EUR/AUD Is At A Strong Resistance Level

The EUR/AUD situation seems to be becoming clearer and clearer.

It is obvious that the pair is forming a flat correction in the zone of the weekly and monthly resistance around 1.49.

On the H4 time frame one can clearly see this corrective movement that interrupted the upward trend from 1.39816 (17th April 2017)  to 1.49099 (4th May 2017).

The correction looks like a pennant and there has been a breakout, with its limit being at 1.4955.

Considering the strong resistance above which the pair needs to break out, however, that expectation for a rally may prove incorrect and there could be a new drop toward 1.46.

However, even if there is a drop, I think that the correction remains valid, which hints that after it ends the pair may continue rising to 1.53 – 1.54.