Following up on the Euro versus the Japanese Yen pair (EURJPY), that we analyzed a fortnight ago. Our bias then was bullish ensuing the first retest. Bears came in after the first retest and pushed prices lower for another test. We can see that the test was successful as the neckline wasn’t broken. Bulls later came in and started the rally again.
Price action confirms our previous bullish bias by another test and a minor rally. Therefore, we still believe bulls may sustain higher prices possibly to the near term level.
On the weekly chart on the Euro versus the Australian dollar pair (EURAUD), price has been ranging since June this year. In the process a descending triangle formed and last week we had a break out from the resistance of the triangle.
A break out above the pattern is an indicator of potential bullish direction. Following the potential direction, we need price action confirmation to back up our bullish bias. The confirmation in this case could be in the lower timeframe such as the daily chart. We closely monitor the pair to see if price will rise all the way to the major level if bulls take charge.
Disclaimer: This analysis is for educational and general information only and not advice or a recommendation to trade or invest. Do your own research/analysis and don’t blindly enter trades based on the analysis.