EURAUD roaring higher from the consolidation phase

Tuesday was a perfect day for EURAUD bulls as the cross was trading 1% stronger during the US session, seen at around 1.6780, which are five-month highs for this cross.

The euro posted a nice bullish breakout from the recent consolidation pattern, which took nearly five months to break. The key resistance was near 1.6540/60, and the EURAUD cross decisively broke above this level yesterday. We also saw a daily close above this resistance, which reinforced the bullish signal.

The price is now continuing with strong bullish momentum as stop-losses of short positions are fueling the rally. The next targets for bulls could be at 1.69/70 and afterwards at around 1.7330. 

As this pattern had been for many months, a bullish signal could lead to a medium-term trading setup, thus holding for a longer-term could be more beneficial than a short-term trade. 

Alternatively, if the cross falls back below 1.6560, the bullish break would be a false one, and in that case, a larger decline might occur toward the previous cycle lows near 1.61.

So far, it looks like the bullish momentum will continue. 
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