AUD/EUR Boxed in Prices about to attempt Breakout.
Since the March lows this year, the Ozzie Dollar (AUD) has put in a strong performance against the EUR, topping out around the February highs on the 8th of June. Lower highs on the Daily time frame proceeded for that week ending on the 12th of June where strong trendline support (lower A) capped further downside. Price action has since consolidated as we close into the apex of the bull flag (A). The Bull Flag is perfectly located at the top of a midterm uptrend, which could increase the chances of this popular pattern playing out.
At the time of writing this article, the AUD/EUR currency cross is currently sandwiched between strong Monthly support and dual trendline resistance at (1). Watch for a convincing breakout, hold, and close from the Bull Flag on the Daily time frame for another leg higher and for a re-test of June highs at 6215/20. Alternatively, if support gives way AND we break below flag support (lower A), we can expect the Bears to pile in and drive prices lower with a first target zone (strong support) to watch out for at 6020/40s.
At the time of writing this article, the AUD/EUR currency cross is currently sandwiched between strong Monthly support and dual trendline resistance at (1). Watch for a convincing breakout, hold, and close from the Bull Flag on the Daily time frame for another leg higher and for a re-test of June highs at 6215/20. Alternatively, if support gives way AND we break below flag support (lower A), we can expect the Bears to pile in and drive prices lower with a first target zone (strong support) to watch out for at 6020/40s.