This week, EUR/AUD hsa been rallying from around 1.3950 above 1.43 today (5/28). This rally is threatening to break the May consolidation range resistance of 1.4355, which can be a key trend-shifting breakout. EUR/AUD 4H Chart 5/28(click to enlarge) The structure of this month's consolidation appears to be double 3. In Elliott Wave terminology, this means 2 3-wave (ABC) corrections. After such a consolidation, a bullish attempt would likely be part of the motive wave. That means, this week's rally could be part of bullish trend development. If the mode has indeed turned bullish, price should be anchored above 1.41 and should break above 1.4355 . On the otherhand, if price falls below 1.4050, EUR/AUD would likely still in consolidation, and possibly even turning bearish. EUR/AUD Daily Chart 5/28(click to enlarge) Th daily chart shows a choppy downtrend since late 2014. The decline seems to be in a falling wedge pattern. Since March-April, price action seems to be shifting sideways. We still have lower highs and lower lows, but the bullish attempts are starting to look strong. The wedge is already broken, and price is threatening to clear some more resistance factors such as the 200-day SMA and the resistance area around 1.44-1.4445. Also, the RSI is pushing at 60, a break above which would reflect loss of the prevailing bearish momentum. A break above 1.4450 should not only flatten the bearish outlook but signal a bullish one with 1.4895-1.49 in sight in the medium-term. This bullish outlook will develop if EUR/AUD can anchor above 1.41 in the short-term. Otherwise, the market would remain bearish-neutral, with pressure down to the 1.3673 low on the year.