FX Forecast – EUR/AUD D1 Short
Our expectations – The pair went below key technical levels, succeeding in breaking the long-term upward trend. The price is below a strong resistance zone formed by a horizontal, upper diagonal, 23.6% Fibonacci correction and 200SMA. Price Action – Double bear pin bar in the resistance zone. Formation is activated by passing the price below Low-a to the first pin. DeMarker points down, but in a neutral zone – short-term pulses are possible in the upward direction.
The uncertainty in the Eurozone, which was caused by the political crisis in Italy and the tightening of relations between the US and the European Union, has led to a sharp decline in the euro over the past two months. From now on, we should see Trump deal with China after he has somehow managed to smooth relations with North Korea. If the risk appetite returns, AUD will certainly benefit.
Alternative Scenario: If the price moves above the resistance zone, the negative scenario will be spoiled and more likely to see a rise in the pair’s price.
Trader Petar Milanov