EURAUD after breaking below 1.6050, provided us with a strong bearish move which ended at 1.5900 key price action and support zone. The exponential moving average 200 at 1.5900 in the daily time frame supported the Euro gains and didnt let the head and shoulder patterns lower neckline be broken for it wouldve triggered the initiation of dovish trend. 38.2% fibo level at 1.5890 was another support from where the pair took a bullish reversal and landed the pair above 50% fibo level after a touch down at 61.8% fibb retracement zone. 1.6215 and 1.6270 are they key resistance level acting as neckline to the head and shoulder structure in the daily time frame; a breakout above would invalidate the head and shoulder pattern by triggering continuation of bullish trend. 

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

 Euro versus Australian Dollar is being currently supported by our lower trend line at 1.6020 and 50% fibo retracement level at 1.6080, a breakout below would drive the pair towards the lower neckline to the head and shoulder pattern i.e located at 38.2% fibo level 1.5890. The exponential moving average 200 at 1.5890 in the daily time frame will also not let the pair break below that easily, only an impulsive bearish breakout below would trigger the dovish trend and drive the pair towards 1.5654 i.e 23.6% fibo level. As long as the pair stays above the lower neckline, EURAUD will keep on attempting to invalidate the structure and provide more gains to Euro by weakening the Australian Dollar. 

EURAUD

Sep 27 2021