Could EURAUD finally make a dramatic recovery?
Falling wedges are typically continuation patterns, following a pullback consolidation period with the primary trend moving higher.
As we see on the daily - there's been a sizeable move higher in EURAUD after breaking out of the highs of the multi week range at 1.4680, where it subsequently rallied into 1.5050 without any retracements.
We see that price has since pulled back in a falling wedge, bouncing perfectly off the "golden fibo" whilst also retesting the former resistance and liquidity areas at 1.4860, which is now confirmed as support, before staging a solid rally – in turn printing a bullish engulfing candle on the H4 timeframe.
The probability is we see a bullish break of the wedge and a continuation move all the way to 1.5200, which is also the 127.2 fib extension which will also complete the ABCD pattern. One for the radar
As we see on the daily - there's been a sizeable move higher in EURAUD after breaking out of the highs of the multi week range at 1.4680, where it subsequently rallied into 1.5050 without any retracements.
We see that price has since pulled back in a falling wedge, bouncing perfectly off the "golden fibo" whilst also retesting the former resistance and liquidity areas at 1.4860, which is now confirmed as support, before staging a solid rally – in turn printing a bullish engulfing candle on the H4 timeframe.
The probability is we see a bullish break of the wedge and a continuation move all the way to 1.5200, which is also the 127.2 fib extension which will also complete the ABCD pattern. One for the radar
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