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 bears seemed to be weak.
Simultaneously, the bulls established a bullish Head and Shoulders pattern off 1.5000. The neckline was located at 1.5265.
Confirmation of bullish reversal is evident with four-hour fixation above the price level of 1.5265.
Projection target of this reversal pattern is located at 1.5555. However, the bulls couldn't hit higher than price level of 1.5500 where strong bearish rejection was expressed last week.
Recently, the neckline around 1.5200 was threatened by the bears. Temporary breakdown took place when immediate bullish engulfing candlestick was expressed to push again above 1.5200.
The pair remains bullish as long as this support level remains defended by the bulls. Projection target is located at 1.5555.
