Euro versus Australian Dollar has adapted to dovish stance on a very smooth note - just in accordance to our analysis published on 4th Oct, anticipating the bearish move based on the head and shoulder pattern being formed on the daily chart and failing to acquire 1.5890 and 1.6080 territories. Aussie Dollar bulls took advantage of the Euro weakness and is making sure to reverse all the gains made since early June and July 2021. EURAUD after breaking below the 61.8% fibo level - was suppose to find support near 50% and 38.2% fibo retracement zone, but the neckline at 1.6020 and 1.5890 were strong enough to hold and manage the pair above by providing a bullish reversal, instead GBPAUD precisely followed the norms of the structure by breaking below the exponential moving averages 50 and 200 in the daily time frame. 

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

After breaking below the 38.2% fibo retracement level, the pair has confirmed its next target at 1.5654 i.e 23.6% fibo zone - which might become a strong price of bullish reversal to EURAUD. The relative strength index in the daily time frame and the interday charts are strongly floating in the oversold conditions and are looking for a good level of going for temporary bullish reversal to correct the relative strength index on interday charts. We can expect EURAUD to move towards 1.5890 and exponential moving average 50 in the four hourly time frame to provide us with a bullish correction before continuing its bearish trend. EURAUD needs to further break below 23.6% fibo price in order to open doors towards further losses and dovish move at 1.5439.

EURAUD

Oct 11 2021