EURAUD pair is in a bullish trend. Today it reached key resistance near 1.5065, where the high of September 2016 was located.

EURAUD D1

As you can see on H4 chart below, there was a bullish reaction on that resistance, which led to formation of Outside Bar. If the minima of that formation are broken further declines will be supported at 1.4880.

Significantly, the support area at 1.4880 coincides with a 50% abolition of the last growth impulse. Perhaps it is from this level that the pair will return to grow and follow the bullish trend and target of this scenario will be to re-attack price level at 1.5065.

Alternatively, breaking the support area at 1.4880 will open the way for further declines. Another level of defence will be visible at around 1.4455.

EURAUD H4

Leave us a comment!

Ransquawk
SHARE
Previous articleFrom Investor To Scalper – AUDNZD With A Chance For Short-Term Growth
Next articleMarket Overview – The Damage Done
Since 2010, he has been actively involved in the Forex market up to now. He is a supporter of Price Action and using as few indicators as possible. He believes that the simplicity of the system and consistency in its application is the best way to success in financial markets, and lack of patience is the most frequent cause of failure. Interested in classical systems based on Technical Analysis and in psychology - mechanisms that guide human behavior and conditioning decision making in trading.