EUR/AUD might return back to the key resistance

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Updated: 04 June 2020

Hello traders! Australian Dollar shows strong signs of weakness across the board, while many AUD pairs can be expected to correct after the recent trend.

The EUR/AUD currency pair has reached and rejected 361.8% Fibonacci support level, of the Fibs applied to the corrective wave up after breaking the 200 Exponential Moving Average. This could mean that as long as price remains above the recently printed low at 1.6033, EUR/AUD should be heading towards the previous area of resistance.

The resistance area is located between two Fibonacci retracement levels, namely 78.6% at 1.6615 and 88.6% at 1.6688. We can see that first resistance also corresponds to the 50% Fibs applied to the corrective wave up where 200 EMA was rejected last time. And the second resistance level corresponds to the downtrend trendline as well as the upper trendline of the descending channel.

Bias: Strongly bullish while above 1.6095

Potential Support Zone:1.6161 -1.6210

Potential Targets: 1.6615, 1.6688

Have a profitable trading!