Bounce or break?
EUR/AUD is hanging out at the top of its range visible on the 4-hour chart, testing resistance at the 1.6550 minor psychological mark.
If the ceiling holds, the pair could slip back to the bottom of the range at 1.6135. An upside break, on the other hand, could be followed by a rally that’s the same height as the rectangle pattern.
Stochastic is pointing down to hint that sellers are ready to take over, but the narrowing gap between the moving averages suggests that bullish momentum might pick up.
Tags: Technical Analysis