EURAUD forming a double bottom pattern

The EURAUD cross has been volatile in May so far, and the initial rally was nearly wholly erased. On Wednesday, the EURAUD cross was seen somewhat lower at the time of writing, changing hands at around 1.6810.

The cross stalled at the 61.8% Fibonacci retracement level of the latest big rally. This support is at around 1.6780, and it looks like the price is trying to form a double bottom pattern here. If bulls defend this level, the next target for a bounce could be at today's highs of 1.6880. If this resistance fails to hold, the cross could rally toward 1.6950, where the 38.2% Fibo level is located. 

The potential of the double bottom formation is circa 100 pips, and the pattern would be confirmed when the price jumps above 1.6880.

Alternatively, if the cross breaks the 1.6780 support area, larger stop-losses could be triggered, which might push the price further down. The next support appears at around 1.6670, thus some 100 pips lower. 

If stock markets continue in their bullish tracks, the EURAUD cross likely moves lower as stocks and this cross are usually negatively correlated. 
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