Fan Yang
2
All posts from Fan Yang
Fan Yang in Fan Yang,

EUR/AUD - Kilroy Spotted

EUR/AUD has been bearish since tagging 1.52 at the beginning of April. As we wind down the month, the pair has stalled after tagging 1.4450. It even looks like it is attempting a bullish reversal. 

EUR/AUD 1H Chart 4/25

(click to enlarge)

We are looking at the 1H chart, so we are assessing a very short-term time-frame. Still, we can see that there is an inverted head and shoulders (kilroy) pattern forming. As we start the week, price tagged the neckline but retreated. 

Now, I see 1.4550 as a key level. If price holds above this pivot, the 1.4623 neckline is vulnerable. If price falls below 1.4550, then, the right shoulder will become vulnerable, and the 1.45 pivot area would be in sight, with risk of the kilroy pattern collapsing. If the pattern collapses, EUR/AUD would be at best neutral-bearish, which means that even the 1.4450 support area could be vulnerable.