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15 May 2014
EUR/AUD in correction mode above 1.46
FXStreet (Bali) - EUR/AUD posted marginal losses on Wednesday, extending losses to a new low not seen since Nov 21 2013 at 1.4575 before a rebound, which is stretching up in Asian hours, took the rate at 1.4645.
If one is to obey the technical clues recently provided by this market, it would appear that not only bears remain in control after distorting the 2013 uptrend structure, but they also may enjoy much further room to ride the price lower until the daily H&S pattern's target circa 1.4250 is met.
Achieving such ambitious bear target, however, will have to face several critical areas, the first being 1.45, a confluent level, with a break lower opening the doors for potentially new downside momentum towards 1.4320 (sequence of lows from mid Nov 2013) ahead of the final target mentioned. On the upside, immediate resistance can be found at 1.4675 (swing low May 12) ahead of 1.4750 (swing high May 12) and 1.4770 (supply May 9).
If one is to obey the technical clues recently provided by this market, it would appear that not only bears remain in control after distorting the 2013 uptrend structure, but they also may enjoy much further room to ride the price lower until the daily H&S pattern's target circa 1.4250 is met.
Achieving such ambitious bear target, however, will have to face several critical areas, the first being 1.45, a confluent level, with a break lower opening the doors for potentially new downside momentum towards 1.4320 (sequence of lows from mid Nov 2013) ahead of the final target mentioned. On the upside, immediate resistance can be found at 1.4675 (swing low May 12) ahead of 1.4750 (swing high May 12) and 1.4770 (supply May 9).