Chart of the day

EURAUD is breaking higher above the strong resistance of 1.6780. This break is opening a continuation higher to 1.7300 which is the uptrend channel resistance.

This is viewed as the fifth wave higher after the fourth wave pullback and a break above the triangle resistance of 1.6600. A break below 1.6600 is now required for a downside reversal and an invalidation of the immediate continuation in the fifth wave higher.

Long trade, you can open here with a stop loss just below 1.6740. You can only open short trade entries in case of a break below 1.6600. We favor the long trade entries as we expect an upside extension after a clear break above 1.6600.

EURADU