Nick Nasad
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EUR/AUD - Breackout and Throwback After Accumulation, Mark-Up Next?

The EUR/AUD pair has shown some interesting price action, with a bottoming pattern following a sharp slide downward.

EUR/AUD - 4HOUR:

  • After the sharp decline in late Aug-early Sept, the EUR has put in a bottoming formation, over 3 weeks, with the neckline/resistance level around 1.4450.
  • In the middle of last week, the EUR had a breakout though that neckline, advancing to 1.4555, about 100 pips.
  • After the breakout, you would like to see a throwback, which we got to start this week. The old resistance pivot 1.4450, did get tested as support (this is also the 21-ema). 
  • In the 1-hour time-frame the throwback looks like a flag pattern has been put in.
  • If there's further demand for EUR over the AUD, then the next phase here would be a bullish swing, know-as the "mark-up" phase. It should exhibit trending characteristics. 
  • The targets for the mark-up phase could be from 1.4670 to 1.4750, which could come in one initial burst. Then, you would expect some some corrective action to set in.
  • Here's an example of the swing, we may have completed the 1-2-3 points.
  • So, I'm looking for the continuation here. As long as we we stay above 1.4450 (or its vicinity) I'll be on the lookout for bullish opportunities.


See the EUR/AUD below:


- Nick