Euro can be seen being taken over by the Aussie Dollars strength which brought the pair below 50% fibo retracement level 1.6080 after a failed attempt of trying to break above 61.8% fibo level 1.6270. The formed head and shoulder pattern carries its neckline at 1.6270 which needs to be broken to provide bulls with the opportunities of further gains. On the daily chart we can also see that the pair has broken below the lower trend line of our upper channel and is looking forward to settle at 1.5890 but is currently being supported by the exponential moving average 200 and the lower neckline of the head and shoulder pattern. The pair needs to break below 1.5890 in order to open doors for further losses towards 1.5695 and 23.6% fibo retracement level i.e 1.5654.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

The relative strength index and MACD on the daily as well as interday time frames - are showing clear signs of weak bullish momentum while the bears preparing to drive the pair lower anytime soon, specially keeping the head and shoulder pattern in regards with only an awaited bearish breakout from the aforementioned support zone. On the bullish side, Euro needs to regain 1.6080 and 1.6100 price action in order to move higher again towards 1.6215 and 1.6270 i.e 61.8% fibo retracement level. We would advise our retail traders to wait for a reversal towards Senkou Span B of the ichimoku cloud and followed by a bearish impulsive closing below 1.6080 and exponential moving average 200 which would confirm the bearish trend. 

EURAUD

Oct 04 2021