Our spidey senses start to tingle!
There are reasons to believe that there will be a bounce soon, and the EUR/AUD pair will continue its upward trend.
The ADX’s value is more than 25 indicating that the trend is not over yet.
Also, the Stochastic formed lower lows while the price formed higher lows (aka ‘hidden divergence’), AND it is currently at no bear’s land, which means the bulls are about to take over soon.
Using the Fibonacci retracement lines and our lovely red channel, it is possible that the bounce will occur at the 50% level.
And because nobody wants his/her capital to go “PUFF” in no time, ALWAYS place a stop loss (SL)!
A suggested SL can be around the 100% Fibonacci level.