Overview: EUR/AUD traded south yesterday, falling below the 1.5700 key support level, which is marked by the lows of January. Overall, the pair continues to trade below the downside resistance line taken from the high of October, while yesterday’s fall has confirmed a forthcoming lower low. All this paints a negative near-term picture, in our view. The pair continues to fall further in the channel. The pair continues to travel below the support line and bears are becoming more aggressive in this session.
The market shows its volatility towards its negative side in this market. The market showing the potential opportunities towards its sell-side in the market. We can see the short-term selling side in the market. The bears are showing their forces towards the downward side of the market. The negative side has been created the bearish signals on the market.
Technical Analysis: From the technical point of view, we can say that a downtrend line is lying on the chart and the bears are getting supply pressure from that level. The odds are in favour of the bears. The RSI is also below the 50 levels with sell signals and MACD also travelling below the zero levels as creating the sell signals. On the 4 hourly charts, we can see bearish marabuzo in the market which makes the market fall towards its lower side in the market. the market is making the lower swings in the market. the minor line EMA are falling below the SMA lines in the market. So we can suggest that the seller should go for sell-side. The support of the market is 1.5600 followed by 1.5519 and resistance is 1.5800 followed by 1.5900.
Trade Idea: The traders are advised to go for sell 1.5680-90 and target will be 1.5600-1.5500 and stop loss will be 1.5800.
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