EUR/AUD Intraday Technical Analysis and Trading Recommendations for February 9, 2012
EUR/AUD currency pair is now testing resistance area 1.2296 – 1.2333 which is previous multiple buttoms on the 4H chart.
The previous two 4H candlesticks show bearish reaction towards the resistance area manifested in the inverted hummer & bearish engulfing candlesticks.
The 1H chart shows that the pair was trending up within a bullish channel reaching the resistance area 1.2296 – 1.2333.
The previous few hours show weakness of the bullish direction & break of the bullish channel with a possible Head and Shoulders reversal pattern with neck-line at 1.2275.
1H Closure below 1.2275 confirms the reversal pattern.
Based on the previous analysis
The pair offers a short position near the current price 1.2296 as long as the pair doesn’t close above 1.2340.
TP should be at 1.2259, 1.2205, 1.2140.
The material has been provided by Instaforex Company – instaforex.com
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