By examining the weekly studies of EUR/AUD pair, we can see how the prices have produced a bearish trend during 2014 after placing the significant high of 1.5827.
Coming again beneath the middle line of Bollinger bands® has assisted the pair to move lower once again along with long black candlestick –formed last week-offer a classical probability of breaching the neckline of the potential head and shoulders top pattern.
Of course, the pattern needs longer time to be affirmed, but the structure looks impressive for medium-term traders.
Assessing indicators, RSI14 is negative below the value of 50.00; whilst Vortex-strong trend indicator- hints at further depreciation.
Trading Strategy:
Medium-term traders should be patient until the EUR/AUD, as the pattern has targets below 1.30 levels if it becomes active with a break below the sloping confirmation line. However, 1.3130 represents a strong support zone as it could be the soft technical objective.