- EUR/AUD bears in control with the market below long term resistance structure.
- A bearish extension is playing out on the daily chart.
EUR/AUD is a contradictory situation with the long-term chart's resistance structure yet to be retested. However, the market remains in the hands of the bears for the meantime and a daily downside extension is most probable.
The following top-down analysis illustrates that the 4-hour picture could be in the throes of a bullish correction prior to the next move to the downside.
From a monthly perspective, there are prospects of a restest of the old support now turned resistance.
However, the daily chart has started to extend what has already been an impulse that has been corrected to the resistance structure.
The failure to break above the structure and given the strength of the rejection, the near term bias remains in the hands of the bears.
From a 4-hour perspective, the price has broken old support but it could be due for a correction before the next bearish impulse.
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