EUR/AUD Price Analysis: Bullish prospects for upside extension

• EUR/AUD is working up towards a high probability bullish trade setup.
• Bulls will want to see a break to the upside through the 4-hour 21-moving average. 

EUR/AUD has corrected a daily bullish impulse in a decelerating decline which gives rise to prospects of an upside continuation.

The following illustrates the daily price action and a trade set up that can be monitored from a 4-hour perspective. 

Daily chart

From a daily perspective, we can see that the price has drawn back towards a 50% mean reversion, significant enough to expect a continuation within a bullish W-formation. 

4-hour chart

From a 4-hour perspective, bulls may want to wait for the price to break higher and enter on a pullback from the newly formed support structure. 

MACD confirms that the price is in a bullish environment, but it is still below the 21 moving average. 

The target to the daily old supports meets -0.272% Fibonacci of the recent daily correction for confluence.