EUR/AUD has one final line of defence at 1.6120

Euro/AUD has one final line of defence at 1.6120 from a chart perspective. Stops will be triggered below 1.6100, as the R3 sits there, so that area is going to be crowded. Today’s Daily Pivot is 1.6298, but we only managed 1.6285, and with the market in a downtrend, the pressure remains on the downside unless buyers defend this zone.

If Euro/AUD is going to hold, then the 1.6145–1.6120 area is where contrarian traders will take their chance. No one wants to stand under a falling sword, but this is exactly the type of price action that creates chart patterns — otherwise Double Bottoms would never form.

From 1.6120, we saw a correction back to the 38.2% Fibonacci, and because that Fib held, it kept the downtrend intact while easing the severe oversold conditions. For me, I bite the bullet on this type of setup. I believe in chart patterns, but I also respect trends — so I’m only looking for a correctional move, not a trend reversal.

Stops sit below 1.6080, and I’d be looking to run this back toward the 1.6500 area. For me, it’s a no‑brainer.

For day traders, stick to the Daily Pivot Points — they project the market’s behaviour on a daily basis. Today we have:

• DP: 1.6298.
• S1: 1.6213.
• S2: 1.6150.
• S3: 1.6008.
• S4: 1.5866.

Use them daily — they work.

This is a “close your eyes and do it” trade. It could be a corker if you get the timing right and avoid getting stopped out with everyone else below 1.6100. Give it room on the downside, and remember — you can always reverse if it continues to behave like a falling sword.
This is not to be construed as investment advice.
My Money…My Risk.