On the daily time frame, EUR/AUD just broke through the neckline of its double bottom, signalling the impending arrival of a long-term reversal.
Prior to that, the pair may still require a brief retest of the previous resistance level in order to gain further positive momentum.
The 38.2% Fib corresponds with the broken neckline, which would perhaps be enough to limit losses, according to the Fib tool. The 50% level, which is nearer to the moving averages' dynamic support, might see a greater pullback.
Oh, and did I add that I'm also anticipating a new bullish crossover?
However, stochastic isn't providing very obvious directional cues at the time because the oscillator is in the middle of a consolidation pattern.
Watch out for a move back to the swing high at the 1.5700 handle or a rally that is the same height as the reversal pattern if any of the Fibs continue to act as support. That would be around 900 pips.
