EUR/AUD: Key level was not reached, what to expect now?
As explained in our last post on this currency, the key level in order to signal a bearish trend on the pair was 1.48142 on the Daily.
The first hours of the year opened very bullish for the pair which did not cross the level, invalidating the take over from the bears.
The opening candle did not even touch the key level. KS acted as a strong support. This was also confirmed by the LS which crossed its TS very clearly. The big blue candle entered the KUMO but should be stopped somehow by it’s upper level, the SSB. Let’s check H4 for a clearer view.
H4 shows that the prices attempted to completely get rid of the KUMO but were stopped and it seems they want to penetrate the KUMO from the upside again suggesting that the bullish momentum is short of breath.
H1 shows a completely different story: prices strongly broke the KUMO, this was confirmed by the LS as well. One could have taken a long position at these levels. TS and KS are both pointing upwards suggesting that the bullish momentum is on.
Prices could test their TS (orange curb) before starting to rise again. This is expressed through the full red candle which is currently forming.
On the bearish side, A break of the TS could lead the pair to drop to its KS.