Since January 24, the EUR/AUD pair has been moving to the downside within the depicted bearish channel.
On February 13, the bulls expressed a bullish breakout above the upper limit indicating weakness of the ongoing bearish momentum.
Simultaneously, the bulls established an inverted Head and Shoulders pattern off 1.5000. The neckline is roughly located at 1.5265.
Confirmation of bullish reversal is evident with Four-Hour fixation above price level of 1.5265.
Projection target of this confirmed pattern is located at 1.5525 as long as neckline remains defended by the bulls (our stop loss level).
On the other hand, consolidation below 1.5265 threatens our bullish view hindering further bullish progression allowing a sideway movement to take place between 1.5265 and 1.5080.
