EURAUD has been moving recently in a trend and is re-testing the vast majority of previously defeated levels of resistance now working as a support.
Market has been moving for a long time up. It is noteworthy that these increases took place in a very technical manner, and after each growth impulse there was a downward correction, which in majority of cases ended with a re-test of the previous resistance.
Sometimes these corrections were deeper and sometimes shallower, but each time they were less dynamic than previous impulses.
Currently, we have seen consolidation for over a week. There is of course also a form of correction, but given that within this box declines are more dynamic than the upswing, in near future we would expect we could break the bottom.
The current situation on the daily chart may also be a forecast for pro-bearish scenario, where we note that as a result of the ongoing from February 23rd upswing price reached 1.5050 area, where already first bearish reaction occurred last week. This level, however, has not been permanently discarded though if that were the case, we would expect a re-test of 1.4600.