Starting from the weekly timeframe and keeping EURAUD under the lens of elliot wave pattern - the pair has just completed its corrective structure of a bit lower degree near 1.61210 yestarday. EMA200 and EMA50 are crossing over each other showing signs of decisiveness in the market. RSI is trading near 60 while MACD is still showing some signs of bearish momentum. This zone is weak in demand and has shown extended consolidation in the past. 

Moving down to our daily time frame and drawing fibb retracement levels from the nearest highs at 1.61210 to its lows at 152610, EURAUD has moved below 50%fibb level, indicating a nearby correction in process. Daily chart is a bit different from the weekly perspective interms of corrective structure being completed at one end (weekly) while a corrective structure has just initiated at the other (daily). Both are providing us with bearish sentiments and dovish move before extending any higher projection.

H4 time frame is also projecting its move towards our 38.2fibb level at 1.58710 with our EMA200 acting as a barrier. 

BEARISH AND BULLISH POSSIBILITIES/ CONDITIONS :

The European Central Bank (ECB) decided to leave the interest rates on the main refinancing operations, the marginal lending facility and the deposit facility unchanged at 0.00%, 0.25% and -0.50%, respectively, as expected. Also ECB agreed on a symmetric inflation target of 2% over the medium term. Interest rates have been close to their lower bound for some time and medium-term outlook for inflation is still well below ECB's target. On the technical side , EURAUD has started correcting its RSI from 70 level and is providing confirmation in support from the Fibb levels to project a dovish mood before developing any bullish strength. 

EURAUD D1

Jul 22 2021

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