The EUR/AUD has formed a big leaned Head and Shoulders (Bearish SHS Type 2) pattern and we could see a drop towards daily support if AUD strength continues.
The recent strength in AUD this week is due to it been oversold in recent months, along with strength in Commodities prices like Oil/Gas, Copper, Gold. This is happening in combination with a risk-on sentiment from a pullback rise in Equities this week, as they were sold-off last week.
The pair might reject within 1.5920-30 zone as the AUD is gaining strength. At this point AUD looks stronger than the EUR. If the pattern and the intra day trend is respected we might see a drop toward camarilla levels. Targets are 1.5888, 1.5856 and 1.5835.
The analysis has been done with the CAMMACD.MTF template.
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Many green pips,
Nenad Kerkez aka Tarantula FX