EURAUD completes a major pattern ahead of the ECB tomorrow

The EURAUD has completed a head and shoulder pattern after it’s breakdown a few weeks ago on October 6th. The RSI is divergent, oversold as we hit the 88.6 Fibonacci retracement. The completion also comes in at the 1.5370 level. With the ECB tomorrow, the pair will be hard pressed to push much lower, so in the event of a more hawkish than expected ECB, a move back above the 1.5500 level could trigger a “short squeeze” back towards the 200dma near the 1.5740 level.

Blake Morrow