The bearish run on the AUD that has been ongoing since around March has resulted in an uptrend on other pairs, such as the EUR/AUD. The EUR/AUD in turn has developed into an ascending channel, and that channel has now clearly broken and showing a possible comeback by the AUD to some extent. Last week the pair formed a double top on the 4 hour chart after falling from the high at 1.4995 and breaking through the 38.2 support level which then became resistance and the ceiling for the double top. Now, the pair faces another immediate support level at 1.4428 where the 50% Fibo and highs from July 12 and July 25 wait to push the bears back. If the bulls fail to hold this level then the next logical step in the journey is of course the 61.8% Fibo at 1.4295 which sits just above further support at 1.4200. If the bulls take back control, they will have to clear last week’s highs at 1.4628 and encounter further resistance at 1.4750 before a possible run back to the top of the channel, and maybe new 3 year highs above 1.5000.
