In a 4-hour graph the EUR/AUD currency pair formed a Piercing line candlestick combination, indicating upside movement.
This candlestick combination formed in a downtrend after the pair reached the high at 1.4341 where the bulls could not solidify and the bears started to increase their influence. However, the pair rebounded near 1.3630.
Upside movement is supported by the fact that the pair is trading near support levels that prevented the EUR/AUD from a downfall for several weeks in Autumn of 2010.
Break of the 23.6 Fibonacci correction level will prove this viewpoint. Further, if the main support level, where the 38.2 Fibonacci correction level is also located, is broken, in this case an advance to 1.4520 should be expected.
On the other hand, if the pair breaks the 1.3630 support level, long positions should be closed as a breal of this level might result in a decline to 1.3500.
