On January 24, the EUR/AUD pair initiated a downside movement. This movement was maintained within the depicted bearish channel.
On February 13, the bulls expressed a bullish breakout above the upper limit when the bearish momentum expressed considerable weakness.
Simultaneously, the bulls established a bullish 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 showed indecision around 1.5265 for few hours before the bulls managed to establish an ascending bottom around 1.5185.
Projection target of this confirmed reversal pattern is located at 1.5525 as long as neckline 1.5265-1.5200 remains defended by the bulls (our stop loss levels).
Breakout above 1.5370 is essential to pursue further bullish targets of the Head and shoulders pattern.
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.
