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EUR/AUD Signals Bullish Outlook with Range Breakout

Since last week, EUR/AUD has been in a bearish correction. The 1H chart shows the pair retreating from 1.53 to 1.4992. This week, traders respected the 1.4992 support several times, keeping price in a range with resistance around 1.5107. 

EUR/AUD 1H Chart 8/19
(click to enlarge)

The 1H EUR/AUD chart shows the pair now breaking that week-long range. Price action is strong and the RSI clearly pushed above 60, almost tagging 70. These are signs that the market is ready for bullish continuation, at least towards the 1.53 high if not higher. Now, if there is a pullback, we should see price hold above 1.5050. Otherwise, the current breakout might be false, and we might see further bearish correction in the pair. 

The preferred scenario is the bullish continuation one, mainly because the prevailing bullish trend seen in the daily chart is still intact

EUR/AUD Daily Chart 8/19
(click to enlarge)

The daily chart shows EUR/AUD rallying in a nicely formed rising channel from a low of 1.3673 at the end of April to 1.53. There is no real indication of topping, other than the fact that a break above 1.53 was rejected at first. Now, if the bullish breakout in the 1H chart stands, the pair might threaten that 1.53 high again as the next move.