EUR/AUD – More downside expected

Start trading
Updated: 22 April 2020

Good day traders! On the 20th of March, my analysis pointed to a possible reversal lower in the EUR/AUD currency pair. The decline that followed managed to reach both target objectives at 1.7482 and 1.7000.

EURAUD 4h Chart 22042020

Since the initial drop lower, price has been sliding downward within a channel. At some stage soon, we could see a larger correction higher that could either reach my green median line around 1.7710 – 1.7900 or just the upper channel line, before the next decline starts.

Conclusion

Although EUR/AUD reached both targets, the slide lower could indicate that an even deeper decline is possible. I would not be surprised if a correction takes hold soon that extends above the current channel but for me, that would just present another opportunity to sell EUR/AUD.

Price might eventually reach the 1.6172 level, but it would make sense to wait for a correction first.

More updates to follow.

Bias: Bearish after correction

Potential resistance: upper channel line and 1.7710 – 1.7900 price zone.

Potential targets: 1.6172

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

Richard Krugel