EUR/AUD Approaching an Important Resistance

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Published: Jun 26, 2018, 07:59 UTC

A very technical pattern can be spotted on the EURAUD but the thing is that, for the legitimate trading signal, we still have to wait for the proper price

A very technical pattern can be spotted on the EURAUD but the thing is that, for the legitimate trading signal, we still have to wait for the proper price action. According to the technical analysis, we are very close to the major sell signal but the only problem seems to be the perfect entry. Today, the price is advancing higher and it is hard to estimate, where this local upswing will stop and we will be able to come back to the long-term sell signal.

EURAUD Daily Chart

Since the 5^th of June, EURAUD is in the local bullish correction. Orange lines, show us a flag and according to the technical analysis rules, the price should break it’s lower line. Slightly below this area, we do have a combination of two horizontal supports – 23,6 and 38,2% (yellow). In my opinion, price going below the yellow area will be a strong sell signal. That is the negative scenario, but you can see that today, the price is advancing higher, so probably we need to postpone the drop. At least for a while.

How far can we go?

The next resistance is on the 61,8 % Fibonacci and the long-term up trendline (green). Most probably, it will be now tested as soon as the closest resistance. Any bearish candlestick or price pattern will be a strong signal to sell. I think that chances for that are quite high.

This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis

About the Author

Tomasz Wiśniewskicontributor

During his career, Tomasz has held over 400 webinars, live seminars and lectures across Poland. He is also an academic lecturer at Kozminski University. In his previous work, Tomasz initiated live trading programs, where he traded on real accounts, showing his transactions, providing signals and special webinars for his clients.