EUR/AUD made a long bearish move and had a bounce at a level of support. The pair had its second bounce and produced a bullish engulfing candle. Yesterday’s candle came out as a spinning top. If today’s candle comes out as a bullish candle, the pair may head towards the North in the coming days. The H4 and the H1 chart look bullish biased as well. Let us now have a look at those three charts.
Chart 1 EUR/AUD Daily Chart
The chart shows that the price after making a strong bearish move had a bounce at 1.60620 and produced a spinning top followed by another bullish candle. It then came down and produced a bullish engulfing candle at the same level. Yesterday’s candle came out as a spinning top, which closed within the bullish engulfing candle. Thus, if today’s candle engulfs yesterday’s candle, the buyers may go long in the pair and push the price towards the North. The price may find its next resistance around 1.70500.
Chart 2 EUR/AUD H4 Chart
The chart shows that the price made a bullish move and had a rejection at 1.63450. It made a long bearish correction and found its support at 1.62000. Upon producing a bullish engulfing candle, it has been heading towards the North with good bullish momentum. As of writing, the pair is trading above yesterday’s highest high. The buyers may look to go long in the pair and push the price towards the North further. The price may find its next resistance at 1.66000. Since the daily chart is bullish biased, the H4 buyers may consider taking out partial profit and let the rest of the trade run.
Chart 3 EUR/AUD H1 Chart
The chart shows that the price made a breakout at yesterday’s highest high. The buyers may wait for the price to make a bearish correction. If the price comes back to the breakout level and produces a bullish reversal candle at 1.63350, the buyers may go long above today’s highest high. The price may find its next resistance around 1.65000. On the other hand, if the price comes back within the breakout level, it may get choppy. The level of 1.62850 may work as a level of support in that case.
These three charts look good for the bull. The daily traders are to wait for today’s candle to close above yesterday’s highest high to go long. However, the H4 and the H1 chart traders may go long from the value area and push the price towards the North. This may make the pair end up producing a daily bullish candle.