EURAUD has been in an upward trend for the last 3 months, reaching a maximum of 1.6190 yesterday. Yesterday’s daily bearish candle engulfed Tuesday’s creating the so-called Bearish Engulfing- Bearish Outside Bar. This is definitely a bearish Price Action formation that heralds declines.
An additional confirmation for such a scenario may be the situation shown in H4 chart. We see that the pair quotes indicate divergence in relation to the indications on the MACD oscillator. According to the PA + MACD strategy described here, the Outside Bar formation and divergence on the MACD point to further declines at least to the (blue) zone at 1.5980.