EURAUD: Bulls take over

Greetings traders,

As you can see in the 4H chart above, we can see that EURAUD is expected to go up and go all the way to 1.6200 weekly level of resistance.

If we zoom out to the Daily chart, it shows the EURAUD has been trying to break the Monthly level of 1.5800 but failed to do so.

Instead it formed a diamond pattern of consolidation or a reverse heads and shoulders. This type of pattern usually indicates a probable reversal of the price.

What we can also see from the Daily chart is that the previous day has formed a bullish engulfing candlestick pattern on the monthly level, which tells us that bulls have taken over and are driving this pair up.

Overall, we’re probably going to see EURAUD go up and break out of the pattern and continue all the way up to that weekly zone of 1.6200.