Sachin Kotecha
Sach Capital Limited
If we look at the daily chart of EUR/AUD, we can see that the Thursday session resulted in a hammer candle formation followed by a bullish engulfing candle on the Fridays session, signs of a potential trend reversal. We can see that today's candle crossed above Tenkan Sen but is yet to close above it. Ideally, we would be looking for a candle close above Kijun Sen to justify a long position as Tenkan Sen is currently downward sloping suggesting some selling momentum. Tenkan Sen is likely to start levelling off should the price close above Tenkan Sen at the close of today's session. We are likely to see some price consolidation between Tenkan Sen and Kijun Sen before seeing any solid directional move.
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