FX.co ★ Candlestick analysis of the EUR/AUD for 17/11/2010

Earlier on a daily graph the EUR/AUD has formed the combination of candlesticks Breakaway that indicates the bullish signal.
This combination of candlesticks appeared on the downtrend, after the paid 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 currency pair rebounded.
The fact that this candlestick formed near September 2010 low, which potentially can mean the formation of “double bottom”, comes in favor of the upside movement.
The breakout of the Fibonacci correction level 23.6 will confirm this point of view. The advance to 1.5010 is expected with the breakthrough of the main resistance level of 1.4373, where the Fibonacci correction level 38.2 is placed.
On the other hand, if the currency pair reverses and breaches the support level of 1.3666, then long positions should be closed, as the breakout of this mark will lead to new historic lows.