FX.co ★ EUR/AUD intraday technical levels and trading recommendations for March 7, 2014

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.

Currently, the neckline around 1.5265-1.5200 is being threatened by the bears, the pair remains bearish as long as this level remains defended by the bears.

Fixation below this neck-line will open the way directly towards the next support level located around 1.5100 initially.