FX.co ★ Technical analysis of EUR/AUD for February 5, 2016

The EURAUD has been consolidating between 1.5600 and 1.5300 for two weeks. At the same time, the major trend seems to remain bullish, especially after 61.8% Fibonacci retracement level (S2) was rejected.

After rejecting the S2 price moved higher and stuck between R1 and S1. However, the bullish RSI divergence suggests that the uptrend is likely to continue and therefore it could be wise to look for buying opportunities.

Consider buying EUR/AUD either on the breakout of R1, which would confirm head and shoulders pattern or on a pullback near the S1 support level. The stop loss should b placed below the low reached near S1 (1.5418)

Support: 1.5470, 1.5327

Resistance: 1.5613, 1.5790