Hello traders! The EUR/AUD remains under selling pressure since bears are still in control. Price remains below the 200 Exponential Moving Averages and on the last few attempts there was not enough buying power to break above the EMA.
We have applied two Fibonacci retracement indicators to two corrective waves up after breaking below the 200 EMA. Surprisingly there is a point where retracement levels from different Fibs meet. This is the level at 1.6345, corresponding to 361.8% and 461.8% retracement. Perhaps this might be the key support over the medium term for the EUR/AUD.
All-in-all there is a strong resistance area formed between 1.6765 – 1.6790, and it is clear that price has rejected this area multiple times along with the 200 EMA. Lower lows and lower highs are being produced, which also confirms the validity of the downtrend. This brings us to a conclusion, that throughout this week EUR/AUD is highly likely to continue trending down, but as long as there is no daily close above the 1.6790 level.
Bias: Strongly bearish while below 1.6790
Potential Resistance Zone: 1.6690 – 1.6700
Potential Targets: 1.6345
Have a profitable trading!