Yesterday EURAUD formed a pin bar formation just below key resistance level at 1.4180. So far, however, there is no downward movement, as indicated by the pin bar and instead a new high was established.
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The price has not yet reached resistance level at 1.4180, but there is a good chance that it will be tested in coming sessions.
On H4 chart we see that price is also above the 20-period SMA. If the resistance test of 1.4180 would be positive, we can expect price go down to lower levels and close below 20 SMA.
In this scenario, the nearest target for potential falls will be the local low near 1.4050. Much more significant support is close to 1.3950.
Of course, after successful breaking resistance at 1.4180 we can expect continuation of growth and further increases. Another level of defence will be at 1.4290.
