the EUR/AUD is in a strong uptrend channel but price is approaching a key resistance zone and key Fibonacci levels. Can the EUR/AUD push higher in face of such opposition?
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The EUR/AUD seems to be in a wave 5 (blue) at the moment. Price has reacted strongly to the 61.8% Fibonacci target of wave 5 vs 1+3 but price could push towards higher Fibs as long as price stays above the support line (blue) of the uptrend channel. The next push up, however, could complete the larger bullish swing (wave C purple) and start a new downtrend.
The EUR/AUD showed a strong bearish impulse but did respect the 50% Fibonacci retracement level of wave 4 vs 3. A wave 4 (green) is the most probable wave pattern as long as price remains above that 50%-61.8% Fib zone, otherwise a different wave pattern is more likely. A bullish breakout above the resistance (red) could confirm the move up within wave 5 (blue-green).
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