We have a very interesting technical situation on the pair EUR/AUD.Graph on daily chart indicates a downward trend that respects quite accurately edges of the channel. At the end of February was initiated a correction from a major, long-term support and the surrounding of lower edge of the channel. After a period of dynamic growth, yesterday there was a reaction of bears on resistance created by a whole series of previous lows. Engulfing bearish formation at this point would suggest end of growth but situation is not clear enough.
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Weekly chart indicates a perfect place to start recovery after long term declines. So if the engulfing formation is negated, it seems that the price should rise at least to the upper edge of the descending channel.
On H4 chart, we see very high growth dynamics. First, yesterday’s reaction of supply can therefore be regarded as a signal to start correction, and only drop below the support which is the level of the previous high, as the signal to decline.