EUR/AUD is pulling up to an area of interest seen on its 4-hour time frame while stochastic is moving up towards the overbought zone.

At the moment, it looks like the pair is encountering a bit of resistance at the 38.2% Fibonacci retracement level. A higher retracement could last until the 50% Fib level, which is in line with the former support turned resistance level.

Shorting at that area with a stop above the 61.8% Fibonacci retracement level could yield a good return on risk if one aims for the previous lows near 1.5100.

By Kate Curtis from Trader’s Way