FX.co ★ Candlestick analysis of the EUR/AUD for 16/11/2010

On a daily chart the EUR/AUD has formed the combination of candlesticks Breakaway, which indicates a bullish signal.
This combination of candlesticks appeared on the downtrend after the currency pair has reached the high of 1.5454, where the bulls did not manage to fixate and the bears started to increase their influence. However, near 1.3666 the pair rebounded.
The uprising movement is supported by the fact that this candlestick formed near September 2010 low, this may denote the formation of the “double bottom”.
The breakthrough of the Fibonacci correction level 23.6 will mean that this point of view is correct. The increase to 1.5010 is expected in case of the breakout of the major resistance level of 1.4373, where the Fibonacci correction level 38.2 is placed.
On the other hand, if the currency pair reverses and breaks through the support level of 1.3666, then long positions should be cut, as the breakout of this mark will lead to achievement of new historic lows.