Reversal alert!

If this correction stage holds for EUR/AUD, the pair may full a longer-term reversal chart sample.

Right here’s what I’m seeing on the 4-hour time-frame.

EUR/AUD 4-hour Foreign exchange Chart by TV

EUR/AUD is in the course of a correction to an space of curiosity that’s been holding since final month.

That is proper across the 50% to 61.8% Fibonacci retracement ranges, 1.6400 main psychological mark, and dynamic inflection factors on the transferring averages.

Discuss confluence!

If the previous resistance-turned-support acts as a ceiling as soon as extra, value may resume its slide to this month’s lows and kind a head and shoulders sample.

The 100 SMA continues to be above the 200 SMA for now, although, so there is perhaps room for the pullback to maintain going. Then once more, the hole between the indications is narrowing to trace at a doable bearish crossover.

On the similar time, Stochastic is heading north however is closing in on the overbought area to mirror exhaustion amongst patrons quickly.

Higher hold your eyes peeled for an additional wave decrease as soon as the oscillator turns south, but additionally look out for a transfer previous the 61.8% Fib. The latter state of affairs may imply that euro bulls are refusing to again down!