I Expect An EUR/AUD Correction to 1.5750

On the W1 time frame the pair has a well-formed pennant and has reached its support and resistance four times. There is a breakout at 1.5735. The depreciation after the breakout was 503 pips, and the pair has found support in the zone around 1.5274 – 1.5282 where it has formed a double bottom that is very visible on the H4 time frame.

On the W1 time frame the pair has formed two spinning top bars with overlapping bodies which have closed right above the support zone.

During the next week I expect the pair to continue rising toward the resistance zone around 1.5750 – 1.5800 and to test the trend line it broke out below.

After the test the pair should renew its depreciation.

If the pair reaches the limit of the pennant the target of the depreciation should be at 1.4130 – 1.4100.