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 the price level of 1.5265. However, the pair returned to consolidate once again below 1.5265 in a price range extending between 1.5190-1.5390 yesterday .
Projection target of this confirmed pattern is located at 1.5525 as long as neckline 1.5265-1.5200 remains defended by the bulls (our stop loss levels).
On the other hand, consolidation below 1.5200 threatens our bullish view hindering further bullish progression allowing a sideway movement to take place between 1.5265 and 1.5080.
