bdswiss_-_forex_cfd_and_binary_options_-_2016-06-06_10-06-47From Investor to Scalper – series of studies created in cooperation with broker BDSwiss, in which we take a financial instrument and the analysis includes a detailed look at the value from the monthly chart and ending with H1/M15.

EURAUD currency pair for less than four years moves in a consolidation from which in August 2015 market tried a bullish break out. Ultimately, however, those increases were negated and now price is approaching the vicinity of the lower limit of the box.

EURAUD Monthly
EURAUD Monthly

Looking on the weekly chart, we see that potential drop could reach even area of support zone 1,373 – 1,385 and the lower limit of the growth channel. For this to happen we would have to overcome the lower limit of a descending wedge in which area we currently find ourselves.

EURAUD Weekly
EURAUD Weekly

On daily chart, we see that from mid-October last year the market was moving in a consolidation which was the upper limit of resistance zone coinciding with the measuring 38.2% Fibonacci correction of the earlier declines. This zone in the past constituted an important support for 17 months and prevented bears from further declines. Eventually on October 14, 2016 bears defeated this zone and since that breakout we witnessed a calm consolidation where this level was tested as resistance.

It was not until 23 December bulls overcame the said zone but has not changed the attitude of the market because growth reached only in the vicinity of the downward trend line where in late December there was a bearish response.

We are now in the vicinity of the lower limit of consolidation coinciding with the lower limit of the aforementioned descending wedge. The rejection of this level could lead to further growth to the level of around 1,444 coinciding with the momentum of 50% Fibonacci correction of this year’s declines.

EURAUD Daily
EURAUD Daily

Looking on H1 chart we notice that from five days market moves in a consolidation. Only bullish breakout could be a signal for a change of attitude of the market and potential growth, which could reach up to around the level of 1.4460 while the first supply reaction we expect already at 1.4340.

So far we have a downward trend and I would be wary of opening long positions.

EURAUD H1
EURAUD H1

To make an offer to invest Broker BDSwiss and use a low spread, which at the time of the creation of the analysis on the EURAUD was 1.9 pips.

bdswiss_-_forex_cfd_and_binary_options_-_2016-06-06_10-06-47BDSwiss offers its customers a sophisticated and reliable tool to invest in the market CFD / Forex. Especially novices can result in the safe introduction into the world of financial investments. The educational program of seminars and live comments market traders meet the expectations of those who want to learn how to invest successfully, which is building a great partnership between BDSwiss and its customers.

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