EUR/AUD Is Developing Within A Wide Range

After the rally from 1.39846 (16th April 2017) to 1.52181 (2nd June 2017) – marked on the chart with a pale blue line – EUR/AUD started developing within a wide range. That is especially obvious on the W1 time frame.

After three waves forming a downward trend channel, the first and third of which having relatively similar heights, the pair did not renew its move to the upside but it rather stalled to test the resistance trend line of the it broke out above. The pair has been moving between 1.4850 and 1.4950 for almost ten days now.

The range will possibly continue developing for some time, but once there is a breakout to the downside the support on the way down will be around 1.4650 – 1.4600.

To the upside the resistance is around 1.5100 and in case there is a breakout above it we could see a rally to 1.5550 – 1.5600.