The EUR/AUD has formed a bullish divergence with price approaching an area of confluence [D L3, W L4 , 1/8], and [D L4, -1/8], with historical rejections from 0/8 octave and -1/8 octave. Bullish divergence happens when price makes a lower low while the oscillator makes a higher low.
POC zone is 1.6270-80, which comprising both areas of high confluence as stated above. If we see a bullish rejection from this zone, the first target will be 1.6350 [D H3, 4/8] and 1.16370 [D H4, 5/8], eventually reaching 1.6418 [D H5, 8/8]. Continuation of the bullish move happens if the price closes above 1.6500 round level, after which we would be expecting a new uptrend, with an extended target of 1.6450 [Upper Range, +2/8]. Look for bullish candlestick patterns like a hammer or morning star before entry. An Engulfing bar will further add confluence to this setup.
For this to be valid, price must not make a close below the ATR projection Low 1.6256
The analysis has been done with the CAMMACD.MTF template.
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Many green pips,
Davin Wu aka AmbitionFX
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