EURAUD pair after last week’s rejection of resistance 1.4533 coinciding with the golden ratio 61.8% Fibonacci correction of the earlier declines is moving south. As a result of these declines only yesterday euro weakened relative to the Australian dollar by -1.13% and the market overcame last week’s minimums.
Taking a look on the graph H1 since the beginning of the day we observe a very calm growth correction, which although has returned above the 1.4320 level it still seems to have too little power to change the attitude of the market.
In the near future we can expect a gentle deepening of the current correction and re-test of local support around 38.2%, or further momentum 50% Fibonacci correction of the ongoing from last week’s declines.
The emergence of a strong supply response and the rejection of one of these levels could be a signal to open short positions with a potential reach of the decline even in the area 1.4135.
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