The EURAUD currency pair has reached the key level of 1.5880 this month, from which in May this year there was over 600 pips sell-of. As can be seen in the daily chart below, the pressure of the supply side is also visible around this level.
After switching to the 4-hour chart, we can see that the exchange rate is currently in consolidation, the upper limit being the resistance mentioned above at 1.5880, while the bottom, support provides the area at 1.5700.
It is now important to keep eye on the behaviour of the pair on the support / bottom limit of the range. An effective overcoming of 1,5700 would confirm the formation of a double peak and thus open the way for about 180-pips movement towards 1.5550. Another support in the event of the bearish scenario are in turn on 1.5450 and 1.5270. Alternatively, if the course will respect an area of 1.5700, the quotes may again target 1.5880.
