EURAUD is moving in an upward trend. However, in recent weeks has stopped at a key resistance close to 1.5770. There as you can see in the daily chart below, the candles overlap and form a narrow consolidation.
The aforementioned consolidation looks better on a 4-hour time frame. The area over 1.5770 effectively protects against further increases so far.
Similarly with the support zone (lower consolidation limit around 1.5620). Currently, quotes are located near this zone, so we can expect another test.
If support is defeated by the pressure of the sellers, the way to the area at 1.5465 will open, which already served well in this role, but also acted as a resistance from the second half of January this year.
An alternative is, of course, another reflection from the lower boundary of consolidation. If this happens, quotes may go back to resistance at 1.5770.
