The pair is currently making the last corrective leg on the daily. I am expecting a deep corrective structure, which will test the bullish daily trendline before making the second bullish impulse leg.
Price is forming a wedge on the 4 hour timeframe and I expect price to make another leg down before it breaks to the upside. The reversal is also supported by bullish divergence on the Awesome Oscillator.
EURAUD was rejected at daily resistance and formed a double top. This lines up with the divergence on the AO. I entered a short position at the MA crossover and expect 1.42500 to be reached next.
