As can be seen in the EURAUD chart, the price has corrected 50% of its previous move and is now in the channel drawn at the lower line of the channel. Price in this line is on a cluster of two Fibonacci level which is strong level at 1.4785 . Due to the conditions, we have a good LONG opportunity while the stop loss is placed below the bottom line of the channel.
The conditions can also be considered suitable for creating an inverted head and shoulder pattern too.
The conditions can also be considered suitable for creating an inverted head and shoulder pattern too.