After the previous EUR/AUD resistance zone was broken and the trade no longer valid, I wanted to take a step back and just highlight the way that price has been acting.
On an obvious bullish tear, we’ve seen the following textbook perfect pattern:
“Break higher > Pullback > Retest previous resistance as support > Repeat”
Just look at the EUR/AUD daily chart and things are pretty self explanatory:
With the most recent pullback highlighted by Aussie dollar strength, the way that the daily candle wasn’t able to close below support shows just how bullish this pair is and keeps the pattern in tact.
Do you see price continuing on its merry way from here, or will Aussie strength cut the run short? Let us know by tweeting your setup to @VantageFX on Twitter.
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Dane Williams – @VantageFX
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Source: Vantage FX Blog