FX.co ★ Candlestick analysis of the EUR/AUD for 22/11/2010

On a daily graph the EUR/AUD is demonstrating the sideways movement. Earlier the EUR/AUD has formed the combination of candlesticks Breakaway, which indicates the bullish signal.
This combination of candlesticks emerged on the downside trend after the currency pair has reached the high of 1.5454, where the bulls did not fixate and the bears started increasing their presence. However near 1.3666 the currency pair rebounded.
The uprising movement is confirmed by the fact that this candlestick formed near September 2010 low, this may denote the formation of “double-bottom”.
A breakout of the Fibonacci correction movement 23.6 will confirm this point of view. In case the major resistance level of 1.4373 with the Fibonacci correction level 38.2 is breached, then he advance to 1.5010 is expected.
On the other hand if the currency pair reverses and breaks through the support level of 1.3666, then long positions should be closed, since the breakout of this mark will lead to new historic lows.