EurAud Rally After The Diagonal

 

 

 

The charts above were used to analyse Euraud on 2nd June, titled Euraud at Critical Wave Zones. 

 

We saw from the weekly chart that there was a divided thought on the decision to take a bullish conviction.  

 

The correction was projected to complete at 1.3250 ( a good fibonacci and psychology level) but the formation of the ending diagonal posed an early completion and price is expected to rally further.

The intra day resisting region at 1.4350-4450 quickly came to mind. 

We thought that a bounce from this region could invalidate the diagonal (since price will still be within its territory).

As price broke above this resisting region, the bullish move was activated.

 

 With the strength of Euro across major currency pairs, Euraud might rise higher to break above 1.5341, 1.5829 and soar high.

 

 

 

Price will validate or invalidate this.

 

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