By breaking down the price level of 1.5050, the bears confirmed a long-term Head and Shoulders bearish reversal pattern.
The bears managed to break down to 1.4950, then 1.4730 corresponding to 50% and 61.8% Fibonacci levels.
Two bullish spikes were expressed above 1.4950 (50% Fibonacci level on the daily chart) took place. However, the bulls failed to pursue the bullish breakout leading to failure of the bullish breakout attempt.
Since then, the EUR/AUD pair has been moving within the depicted RED channel in an attempt to reach the lower limit located roughly around 1.3880. However, the current prices being tested correspond to a prominent bottom (since November 2013). There's a high probability of bullish recovery to be witnessed around there.
Note that failure of the bulls to provide enough buying pressure at the current levels, will probably expose 1.3900-1.3860 to be re-tested.
