EURAUD, finally a breakout!
|In the last week, we described the bearish setup on the EURCHF. That worked out perfectly. This week, we also start with a nice bearish setup on the EUR, but this time with the AUD. According to the technical analysis and when looking at the current momentum, we should see a further decline soon!
What are the lines and dots on the chart telling us? Since the end of June, the price was locked inside of the rectangle pattern, between the resistance on the 1.588 and the support on the 1.571. Breakout finally came on Friday and I bet that many traders were waiting for that with fingers ready for action. The price draw a bearish marubozu candle and the breakout itself looks legitimate and promising. In addition to this, EURAUD has a Head and Shoulders pattern and currently aims for the neckline, which is marked with a red colour. Chances that we will get there are very high but first, we need to break the support marked with a yellow colour, which is a combination of the important Fibo retracements.
When trading here now, remember that tomorrow, before the European session, we will get an interest rate decision from the RBA. This event for sure will bring us some volatile movements. The question remains: which way? Technicals point south but fundemantals can show us the other direction.
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