EURAUD went for a final upswing starting from 12th Aug and ending at 20th Aug - to complete its impulsive 5 wave bullish structure on the intraday and daily time frame. This lead the relative strength index into highly overbought conditions under four hourly and daily time frame, followed by an impulsive bearish correction. Euro took advantage of the Australian Dollars economical weakness due to rise in spreading of Delta variant, but Aussie managed to get itself back together and formed a dark cloud cover on the daily chart in terms of a sharp bearish correction. The bearish correction seems to have been completed in daily chart and is currently hovering above exponential moving average 50 in daily, which can become a point of bullish continuation of trend. In weekly time frame EURAUD might have a bit more space for bearish tone that could lead the market towards exponential moving averages 50 and 200 in weekly i.e 1.5950. 

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

From the current market perspective EURAUD has touch our lower trend line to the bullish channel and is standing slightly below our 50% fibb retracement level. The relative strength index in four hourly chart has also entered a bit inside oversold conditions, comparing this to the weekly room for a bearish move might dive towards 1.5950 i.e Senkou Span A of the ichimoku cloud, this would then make EURAUD hover above 38.2% fibb. The aforementioned scenario if taken place would create a better opportunity for buyers to execute their positions in direction of the major intraday trend. 50% fibb and our lower trend line to the bullish channel can also become a strong point of bullish continuation of trend because in weekly - EURAUD is trading above exponential moving average 50 which cannot be ignored to placing good buys if a bullish closing above the aforementioned is found. 

EURAUD

Sep 02 2021

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