Hello traders! EUR/AUD has formed a massive support area near 1.6140. Pair has already tested this area for 3 consecutive times and it might be heading towards the same support once again.
The key resistance at 1.6540 was respected on multiple occasions, suggesting the validity of the downtrend. The downtrend trendline has been rejected along with the 50 Simple Moving Averages on September 4, making it the nearest resistance. Therefore, as long as daily closing prices remain below the recent high at 1.6353, downtrend is likely to continue.
EUR/AUD is expected to move towards the 1.6143, which is nearly 200 pip decline. The downside target might correspond to the average-price downtrend trendline. If this will be the case, EUR/AUD will test the support within 8 trading days from today.
Bias: Strongly bearish while daily closing prices below 1.6353
Potential Resistance Zone: 1.6300- 1.6330
Potential Targets: 1.6145
Have a profitable trading!