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EUR/AUD in a Bullish Continuation Push

The EUR/AUD has been consolidating since pushing to 1.6580 in late August. The 4H chart shows the market consolidating above 1.5573 and mostly below 1.62. Price action so far this week suggests the market will try to push above the consolidation resistance and at least go back towards the 1.6580 high with further upside risk.

EUR/AUD 4H Chart 9/28
(click to enlarge)

First of all the 4H chart shows price holding above the 200-period simple moving average throughout the month-long consolidation. Furthermore the RSI held above 40 for the most part during this time. This suggests the market never lost the bullish bias or the prevailing bullish momentum. 

Last week, we saw price push back above the 100- and 50-period SMAs while the RSI tagged 70. This was the first sign of bullish continuation. 

This week, we saw the market test the 1.59 area where the 100-, and 50-period SMAs resided. The market had support here showing that bulls are indeed taking control. The crossover and support of these SMAs is called a sling-shot signal. The RSI also held above 40, which also shows momentum is building up again to the upside.