EurAud is carving out what I believe to be an ascending triangle on the daily. I expect upper resistance to be tested once more at the 1.6235 mark. Very good risk/reward setup at current levels with the possibility of 1500 pips heading into the end of April. If this pattern plays out we can expect a sharp break to the upside toward the end of the year.

There is a possibility of a double top on this pair. I do find this scenario quite unlikely given the global unwind of the carry trade which has been taking place over the last couple of years. Also global liquidity is low and stock markets are looking quite skittish so I expect risk aversion to take hold sooner than later,


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