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  • EUR/AUD is struggling for direction, trapping traders.
  • Bulls now target a test of the M-formation’s nose.

Further to the earlier analysis, EUR/AUD Price Analysis: Bulls seek a bullish extension towards 1.6450s, the price action went significantly against the set-up, but there is always another trade. 

For a recap, we were expecting an upside daily continuation following the correction of the bullish breakout and test of the W-formation’s nose.

However, the market melted and we now have the start of the creation of an M-formation as follows:

The M formation’s nose would be expected to be tested as a resistance. However, the price on the lower time frames may still want to move lower following a correction.