EURAUD currency pair has been moving south since beginning of June. As a result of these declines market broke and after re-testing rejected important support (then as resistance) 1.4926. This resulted in a bearish sequence of lower lows and highs. According to my last week’s projection, market reached local (green) support zone, where a small demand response has already occurred. Overcoming this level could open the way to further declines. This bearish scenario is supported by unclosed bullish gap caused by first round of presidential elections in France.
In short term, we may expect to see at least upside correction and re-test of the 1.4800 level, which rejected could be a sign that declines may continue.
Alternative scenario assumes that if currently tested zone is defeated, we might expect it to be re-tested and rejected from the other side (as resistance).