On Tuesday, I wrote that the 1.5760-1.560 range is very important for EURAUD because the short-term sentiment on this pair will depend on the direction of the breakout. It looks like the supply side won. This is confirmed by the successful retest of the broken support that took place late in the evening. The way to falls in the amount of about 200 pips has opened.
It’s time for declines?
The euro exchange rate against the Australian dollar strengthened strongly last week. The pair easily cut through two resistances and stopped only at 1.5860. On Tuesday after the second attempt, there was a breakdown of support at 1.5760. A successful retest has opened the way to further declines. Currently, at EURAUD there is a great opportunity to open a short position with the goal to support 1.5530. Thanks to this, you can earn about 200 pips. With Stop Losses of 40 pips, this gives a profit / risk ratio of 5:1.