EUR/AUD is rectifying its recent decline and aiming for a 50% mean reversion.
The channel is an ideal place to examine such structures with a retracement.
The EUR/AUD pair is trading in a daily sideways channel, resulting in erratic price activity from day to day.
As the price corrects the recent daily bearish impulse, the current direction is to the upside.
The chart below depicts a possible test of the preceding lows and a subsequent move to the 50% mean reversion of the bearish impulse.
A breach of the 21 EMA will lend more conviction to a rally to the 1.58 level and beyond, to 1.5820, the M-neckline. formation’s
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