On H4 chart of EUR/AUD pair, we observe reflection from the lower edge of the channel. The pattern of lows and highs since the end of February indicates an uptrend. Currently it is beginning to recover from a very dynamic correction.
Interestingly situation looks on the daily chart. Here, in turn, we have been dealing for a long time with a broad bearish channel. As you can see, the previous correction was equally violent and the price returned grow. It seems that we are currently experiencing a similar situation, and the nearest target should be the upper edge of the channel. The fundamentals also favor growth, especially after the recent Bank of Australia statement and reference to AUD appreciation saying it would complicate the economy’s transition away from mining and adding that recent soggy data and a tightening on housing sector regulation to curb price rises also leaves a rate cut still on the table what is rather bearish for AUD.
