EURAUD is testing support
On Wednesday the demand for EURAUD celebrated the achievement of a 3 week high of 1.4290. In just one day supply was able to push the price 200 pips down leading to test major support at 1.4090.
The level of 1.4090 was tested many times but each time ended with an overwhelming response of buyers. In November and December 2016,it was Tested with one daily candle. While in January they were up 3 tests including one that significantly broke support, leaving a long lower shadow on the chart.
Growth channel
The upper shadows of candles from the last three weeks now formed a straight line, which may suggest that the EURAUD soon will be moving inside a bullish channel. If the support 1.4090 is broken than lower limit of the channel at 1.4060 has a chance to give a dynamic reflection. As long as one of the limitations of the channel will not be broken a good idea is to trade from band to band.
