EUR/AUD – Is this the start of reversal lower?

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Updated: 20 March 2020

Good day traders! Two days ago, I was looking at the 1.8600 – 1.9080 price zone for possible resistance to set in for the EUR/AUD but price traded through that level and I had to change my pitchfork setting.

Although the EUR/AUD extended above my initial resistance zone, price reached my upper red warning line and is currently dropping lower with a large wick forming on the weekly timeframe. The warning lines of pitchforks often act as strong support or resistance when you are dealing with runaway markets.

A closer look at the price action shows the large wick that is currently forming and if price breaks below the start of this week’s candlestick, then we could get a decline towards my targets at 1.7482 and 1.7000.

That being said, it would be wise to look at a smaller timeframe like the daily or even 4-hour and to wait for a correction higher and then attempt a short after a possible lower high.

More updates to follow.

Bias: Bearish after a correction.

Targets: 1.7482 and 1.7000

Until next time, have a great weekend and stay safe!

Richard Krugel