EUR/AUD Price Analysis: Bullish prospects for upside extension
- EUR/AUD is working up towards a high probability bullish trade setup.
- Bulls will want to see a break to the upside through the 4-hour 21-moving average.
EUR/AUD has corrected a daily bullish impulse in a decelerating decline which gives rise to prospects of an upside continuation.
The following illustrates the daily price action and a trade set up that can be monitored from a 4-hour perspective.
Daily chart
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From a daily perspective, we can see that the price has drawn back towards a 50% mean reversion, significant enough to expect a continuation within a bullish W-formation.
4-hour chart
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From a 4-hour perspective, bulls may want to wait for the price to break higher and enter on a pullback from the newly formed support structure.
MACD confirms that the price is in a bullish environment, but it is still below the 21 moving average.
The target to the daily old supports meets -0.272% Fibonacci of the recent daily correction for confluence.