EURAUD Is Looking For Strong Resistance

٨ مايو ٢٠٢٣

Broken multi-year trendline support suggests that the Australian dollar will be doing much better than the euro in years to come. Despite recent recovery, we just see it as a corrective rally within downtrend with nice technical multi-year resistance.

Looking at the daily chart of EURAUD currency pair, we can see a three-wave higher degree (A)-(B)-(C) corrective rally after completing the leading diagonal at 1.43 area in summer 2022. By reaching projected August 2021 resistance within a five-wave cycle for wave (C), a bearish reversal can be near, especially if we consider a bearish divergence on RSI. However, keep in mind that bearish confirmation is only below channel support line and 1.5844 level.