EUR/AUD is showing a wider upward trend and also a period staring in the beginning of June, where a large correction occured. Currently we already know that price after reaching first wave of declines has rebounded at the level of support. However, the question is what will happen after this reflection – will the price after such a large correction return to the main trend or yet a new downward trend is forming?
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Daily chart shows an attempt to break local resistance. Yesterday price closed over it, but at night there was a correction. As you can see a long lower shadow of the day candle is slowly forming. If this is the case at the end of the day, chances of a permanent break will increase. It seems that than the pair could rise at least to the upper edge of the descending channel. Forming of a broader trend could be settled there, a break would mean return to a broader trend and a further dynamic downward movement would create a new bearish trend.
