From 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 5/15 minutes.
EURAUD currency pair reached this month vicinity of an important support 1.4050 coinciding with the momentum of 50% Fibonacci correction of the earlier growth.
Looking on the weekly chart we see that the potential declines could be deepened until around the zone of demand levels between 1.3730 – 1.3850. This scenario supports both the earlier defeat and re-test the growth trend line as well as the breakout level of 1.4530.
On the daily chart, we see that the market for a long time has already created a sequence of increasingly lower highs. The problem was with the lows, which for a long time could not overcome the support zone.
Last month, however, price managed to go below the level of 1.4500, which now coincides with the measuring of 38.2% Fibonacci correction of the earlier declines. Only in November, the level was twice re-tested as resistance, and if only manage to overcome the October and November lows, we expect a continuation of declines in the vicinity of the aforementioned support zone.
At the H4 chart we can see that the market for six weeks is moving in a consolidation, in which most important level is1.4324 located exactly in the middle of the whole box.
Since we are currently below this level in the near future we can expect the declines to continue even in the vicinity of 1.4135.
Since yesterday, the market creates even smaller consolidations, and that declines could continue would be necessary to break of the bottom of this consolidation.
Looking at the chart M15 notice that in the ongoing from yesterday consolidation far more dynamic are bearish impulses which would argue for a greater probability of breaking down, and declines to continue.
