As it could
have been expected, EUR/AUD was moving to the upside for the past month. Now
however, the pair reached a strong resistance on the monthly and W1 time frames
and I think there will be a correction of the upward trend.
That is
confirmed by the RSI divergence of the last three highs on the D1 time frame
which is a signal for a possible drop to the zone around 1.5400 –
1.5340.
In case
that correction deepens I think we can expect depreciation to around 1.5000.
In my
opinion, however, the pair is bullish and after the end of this potential
correction we could expect a rally to 1.6000 or even to 1.6600.
In the
alternate scenario the upward trend will accelerate and it will head for its
target to the upside at 1.6000 in the coming week.
Great analysis.
ReplyDeleteGood post!
ReplyDeleteI agree with your point of view.
ReplyDeleteGood insight.
ReplyDelete