Summary EUR/AUD has formed a large ascending channel on the daily with clear middle section. We have now created an extension at the third touch point in another slight ascending with clear middle section, the set up is most probable for a sell set-up in the 1.58400 area.
Counter Argument E/A could move up to the highs before a reversal takes place, although the structure is extremely clean, there is no additional confluence from a double top of area of high value. The Short set up is in higher favour as this is the only confluence factor for counter at the moment.
How would i look to take this? As you can see, i have forecasted a corrective move towards the third touch. I would look to take a bearish engulfing candle for a risk entry or wait for the first push and 1HR or 15M flag formation, to take a reduced risk. Where price is currently we could scoop back down to the previous day low before catching momentum but this still aligns with the longer term approach and structure.