EURAUD H4 rate during today’s session leave the trading range, which capped the price since mid-August (upper limit 1.6150-1.6250, lower limit 1.5660-1.5600). Pair finally closed below the lower band of consolidation and now we wait for a zone retest from below. If sell signals shows, it will be an opportunity to open short positions. It is worth noting however, that EURAUD moved clearly under 50% of August increases (Fibonacci retracement).
Wider view, time-frame D1
Taking a broader perspective (D1 TF) we can see however, that price are still close to the 1.55860 – level capped the stronger decreases since July/August (since then price moves in wide D1 consolidation). If today’s daily candle does not close below this support, then rebound following main trend will be possible. Closing below opens a path for broader correction targeting support zone (November 2014 high).
TRY FX GROW. ECN & STP EXECUTION, FULL TRANSPARENCY.
