After dynamic declines from second half of March, from the beginning of April EURAUD pair moves quietly north in a growth channel. Recently, however, demand has definitely weakened and market has fluctuated near local resistance zone for nearly a week coinciding with 61.8% of Fibonacci correction from earlier declines.
It is worth noting that already once this level in the first half of March stopped buyers. On yesterday’s day, a pin-bar with a very long upper shadow appeared, indicating a strong supply reaction.
Today, once again, market tested the mentioned area, where supply reaction re-emerged. Taking into account the significantly slower growth of entire growth movement and numerous tests of this zone, we should expect a permanent rejection of this level in near future. If this happens, it could break the bottom of the growth channel and potential drops could reach 1.3880 or even 1.3670.