Tools:
Simple Moving Average(SMA) 50-period (red), 200-period (bold, gray)
RSI-14 with Simple Moving Average 5-period of RSI attached.

Fibonacci Study
Elliott Wave Principles
Market and Price Action (patterns, candlesticks)
Intraday pivots and Intermediate-term support and resistance

Multiple Time-frame Analysis

EUR/AUD
EUR/AUD

- EUR/AUD has flattened out, and is showing a head and shoulder in the 4H chart.
- Note that the RSI is still above 40. Also, note the bullish scenario even if we do have a head and shoulder.
- The bullish scenario sees support at around 1.3550. If the RSI is still around 40, there would be a positive reversal signal, suggesting another rally attempt towards 1.3985 (swing projection).
-  However, if the market breaks below 1.3515 (38.2% retracement), it can slide towards 1.3405(50%)  and 1.3290 (61.8%) area.
- The 1H chart below shows the broken neckline at 1.3650. The market might find support near the 1.36 swing projection. As long as a subsequent rally does not break back above 1.3720 area, it is looking bearish towards 1.3550, 1.3405.
- However, if the market rallies above 1.38, it is likely in a bullish continuation to test the 1.3880 high than extend further towards 1.3985.

euraud_02012011_1h

Has the EUR/AUD topped off with this head and shoulder, or is it just a pause before further rally towards 1.3985? We would love to hear what you think.
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Fan Yang CMT
Chief Technical Strategist