The EUR/AUD major trend remains bearish as the price continues to produce lower lows and lower highs. Besides, today’s price has reached and rejected 4 resistance indicators simultaneously.
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: 1.6300, 1.6354
Key resistance levels:1.6135, 1.6000
The first resistance is the simple downtrend trendline, secon is the average-price downtrend trendline, third is the 200 Exponential Moving Average and fourth is the 23.6% Fibonacci retracement level at 1.6302. This goes to show, that 1.6300 could be an extremely strong psychological resistance and as long as daily closing prices remain below todays’ high at 1.6313, downtrend continuation is imminent.
Price can be expected to decline towards the 161.8% Fibonacci retracement level, applied to the correctional move up occurred thoughout this month. This Fib level is located at 1.6004, which almost preceseley corresponds to the 1.6000 psychological support. All-in-all, there is a 300 pip downside potential which might take weeks to be tested.