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EUR/AUD Shows Long-Term Ascending Channel

August 16, 2015 (Last updated on August 24, 2015) by

EUR/AUD is currently showing a very interesting pattern with multiple confirmations — a long-term ascending channel with a starting point on May 1 this year. It follows a bearish trend wave beginning in December 2014. The resulting continuation pattern offers a shorting opportunity in case of a bearish breakout.

The dashed yellow lines on the image below mark the channel’s borders (note the number of price hits). The cyan line, placed at 10% of the channel’s height below the lower border, shows my entry point for a short position. The green line is located at 100% of the channel’s height below the pattern’s border and presents an inclining take-profit level for that position. I will set my stop-loss to the high of the breakout bar or to the high of the previous bar in case the major part of the breakout bar appears outside of the pattern. I will not trade a bullish breakout of this ascending channel. If you want to see a full-size screenshot of this setup, please click on the image:

EUR/AUD - Ascending Channel Pattern on Daily Chart as of 2015-08-16

The channel was detected using the Channel Pattern Detector indicator. The chart was built using the ChannelPattern script. You can download my MetaTrader 4 chart template for this EUR/AUD pattern. It can be traded using my free Chart Pattern Helper EA.

Update 2015-08-24 7:05 GMT: The trade setup has been cancelled as the price has broken far above the channel’s upper border now:

EUR/AUD - Ascending Channel Pattern on Daily Chart post Cancellation as of 2015-08-24

If you have any questions or comments regarding this ascending channel on EUR/AUD chart, please feel free to submit them via the form below.

One Response to “EUR/AUD Shows Long-Term Ascending Channel”

  1. Exness Forex

    Two move are happening simultaneously that is providing a bid for EURAUD.1st,EUR has maintained a pretty steady bid as the market seems to lose preference to sell EUR toward new low. a break of 1.0818/09 would need to develop on EURUSD before that becomes a theme again & we are pushing further away from that level 1.1063.Additional the peolies bank of china devalued their currency to remain competitive for export causing the USDCHN to see its largest 1day gain in history.This move saw Asian currencies aggressively decline as signs of deflationary pressures continue.


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