EURAUD is in a bearish trend which needs retracement towards the price of 1.4670. Once market reaches there, we will have a short setup waiting for us till the support level. The market has formed lower lows and lower highs due to which we can easily say market is in a downtrend.

The descending trendline has been broken out for buys and has been validated by the market prices. This breakout buy stayed invalidated by the bearish market structure. On the other hand, we have an ascending trendline which is impending the breakout sell. We anticipated market hoping back up to retrace at the price we have mentioned.

The golden retracement area of 75-78.6% is in confluence with the resistance level. This level will act as a strong hold up for the market continuing up.

The EMA 50 is also bearish with candles below the EMA. The EMA is in a steep down curve which means, the bearish pressure is strong. There is a possibility for the market to retest the EMA 50 at the resistance level from where, we will have multiple factors for shorts.

RSI is at 37 and hovering back from the over sold region. Once market reaches the 50 level mark, we will have neutralized levels. From here, if market is at the resistance level, we will have RSI aligned with the other factors for a down mark.

EURAUD needs to retrace

Aug 10 2022

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