Cabana Capitals Blog Forex Broker EUR/AUD:Some correction or profit booking is expected

EUR/AUD:Some correction or profit booking is expected

EUR/AUD:Some correction or profit booking is expected post thumbnail image

Overview:- Pair has bounced from the 1.6100 level and arrived at 1.7100 level which is a fantastic move well the way bull are reacting it seems like bulls are doing their best and they may approach the 1.6750 level at least which is a point of concern.

Well after a bullish storm we are witnessing some correction or profit booking which indicates that only bulls are doing their best and dominating the bears at every level. In our previous report also we mentioned to buy 1.6240-1.6230 target is 1.6600 and 1.6900 with the stop loss of 1.6100 and our both targets have been achieved so we are expecting that our readers must have made profit from this move.

Technical Analysis:-

The recent candle is hanging man, followed by a bearish marabuzo candlestick which is providing us bearish signal and it seems like pair is going down to retest the moving average lines. From technical prospective we can see that a straight line aggressive buying always followed by a correction or profit booking so here we will find a downside momentum till 1.6750 level which is most awaited. The way bears are reacting it seems like they are approaching the 1.6700 level in near term.

A bullish crossover on the MACD indicator is still valid and favoring the bulls whereas RSI is moving above the 70 line which is providing us bullish signal. Overall all the set up is indicating that further bearish momentum is on the cards.

A daily closing below 1.6850 level will open the way towards the 1.6750 level and 1.6700 level.  Odds are in favor of bears and intraday bias remains bearish on the pair as long as 1.7000 levels remains intact.


What next:-. The 1.6750 is immediate support level followed by 1.6700 level whereas 1.7000 level is immediate resistance level followed by 1.7100.

Trade idea : Based on chart and studies above we can say that sell pair at 1.6893-1.6900 target is 1.6750 and 1.6700 with the stop loss of 1.7000.

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