The EUR/AUD 4-hour chart shows a clear consolidation phase which has started back in June this year. Since then price failed to break above the key resistance located near the 1.6560 area, which has already been rejected twice.
Disclaimer: The analysis presented in this article is for educational purposes only and should not be considered as financial advice.
This analysis was done on MetaTrader 4.
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EUR/AUD symbol on the MT4 platform
Key support levels: 1.6144, 1.6093
Key resistance levels: 1.6357, 1.6300
The 4-hour chart shows a clear consolidation phase which has started back in June this year. Since then price failed to break above the key resistance located near the 1.6560 area, which has already been rejected twice.
Then, another resistance was formed near 1.6360, which was the previous support area. This resistance was rejected along with the 200 Exponential Moving Average, which implies the validity of the downtrend. Besides, today there was a second rejection of the 200 EMA, which yet another confirmation of the bearish domination.
Therefore, as long as daily closing prices remain below 1.6353, the downtrend will be intact. Price can be expected to decline towards the key support level at 1.6144. This level is confirmed by 78.6% Fibs, which is the nearest Fibonacci support which previously got rejected. All-in-all, the trend remains strongly bearish and there is another 150 – 200 pip move downside potential in the coming days or few weeks.