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EUR/AUD - Bottoming Scenario

The 4H EUR/AUD chart shows a bearish market. The 4H RSI has been tagging 30 and held under 60, showing bearish momentum. Price action continues to make lower highs and lower lows. This week, however, EUR/AUD stayed above last week's low of 1.4656 and consolidated. 


(euraud 4h, 4/18)

Last week's resistance of 1.4853 could be key. A break above 1.4855 will have formed a double bottom, or just a rounded bottom if you like.
Then, the previous week's high of 1.4964 will be the next resistance. 

Bullish Within Neutral-Bearish Context
The daily chart shows that the market is trading off a bullish divergence at a falling channel support. We can expect some upside risk in the short-term. However, we should be aware of the head and shoulders and broken trendline that has been developing throughout 2014. The overall market has shifted from bullish to neutral and slightly bearish. Thus, we should limit the bullish outlook at the moment to the 1.5140-50 area, under 2014's falling channel support.