The bias is changing and now pair could start moving lower. Price action says that currently there are more sellers than the buyers.

Disclaimer: The analysis presented in this article and video is for educational purposes only and should not be considered as financial advice.

This analysis was done using MetaTrader 4.

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Trade Idea Details:

EUR/AUD symbol

Trend: Bearish

Key support levels: 1.8130

Key resistance levels: 1.8686, 1.8745, 1.8850

Price Action: 

On the weekly chart, the price has reached 861.8% Fibonacci retracement level applied to the corrective wave down after the breakout of the 200 Exponential Moving Average. This could mean that EUR/AUD has topped out and strong correction down might follow.

On the 4 hour chart, the pair rejected a 38.2% Fibonacci retracement level cleanly. Price produced a spike above this level at 1.8686, although it failed to close higher.

We used a 1-hour chart to calculate the potential downside target, in case the pair will move down. Based on two Fibonacci retracement levels, 88.6% and 261.8%, the key support is located near 1.8130. This is also an area, where EUR/AUD already produced a double bottom.

Finally, on the 15-minute chart, the pair started to produce lower highs and lower lows after breaking below the uptrend trendline. Now the trendline acting as the resistance, which has been rejected multiple times throughout today, March 23

EUR/AUD Weekly Chart

EUR/AUD H4 Chart

EUR/AUD H1 Chart

EUR/AUD M15 Chart

 Potential Trade Idea: Currently EUR/AUD is trading near 1.8570, which seems a very attractive price for sellers. Overall the selling area is between 1.8480-1.8750, which would provide a good risk-reward ratio. Any corrective move up can be considered as a better risk-reward opportunity, but already, it seems like a good idea to go short at the current price.

• Potential StopLoss near 1.8860
• Potential TakeProfit near 1.8125

-Happy Trading!

Related Post:
XAU/USD buy Trade Idea – March 17th 2020