EURAUD has successfully broken out of its 4 month consolidation pattern to the upside and is now ready to test old August and September 2015 highs.
The warning for an upward breach of the downward sloping trendline already came in early December 2015, at this time the momentum trendline was crossed to the upside and led EURAUD to rebound to 1.51.
In the meantime, EURAUD has advanced further, crossed above the multi-month downward sloping trendline yesterday (showing upward strength), successfully tested and rebounded from this line today. This area (red line) is now acting as major support. Momentum is align with price and MACD bounced off the 0 line which is also positive for EURAUD.
Along with this latest action and the positive technical outlook, I believe in significant upside in this currency cross within the next couple of weeks.
BUY at around 1.5618
SELL LIMIT (TARGET) at 1.61 (+482 PIPs)
SELL STOP (RISK) at 1.5325 (-293 PIPs)
TIME HORIZON: less than 3 Months