EURAUD – From January this year, the pair moves in an upward trend, which can be divided into two stages of growth and one correction. Currently, the situation on the D1 graph indicates the beginning of another correction. The last two maxima from September and October are on the same level of 1.6350 and form a characteristic price action formation DT (Double Top). In addition, today’s bearish daily candle created a maximum on the MACD oscillator and the indicator began to decrease.
On the H4 chart we can see that the pair broke last week the top edge of the descending wedge and it seems that if the downturn scenario is implemented, this line will be the closest target of possible falls. If it is overcome, the next goal may be a round level of 1,6000.