EUR/AUD roamed around a level of resistance for several days. Yesterday’s bearish candle closed below a significant level of support. Thus, the sellers may keep their eyes in the pair to go short and drive the price towards the downside. Major intraday charts show that the price has been choppy. A bearish breakout at yesterday’s lowest low may attract the sellers to go short in the respective charts. Let us now have a look at three vital charts.
Chart 1 EUR/AUD Daily Chart
The chart shows that the price roamed around the level of 1.65150 for several days. It produced a bearish pin bar followed by yesterday’s bearish candle. The candle closed below the level of 1.64000, which worked as a level of support in the daily chart. Thus, the sellers may look to go short in the pair. The chart shows that the price may find its next support around 1.61000.
Chart 2 EUR/AUD H4 Chart
The H4 chart shows that the price upon producing a bearish engulfing candle has been heading towards the South with good bearish momentum. The sellers may wait for the price to make a bearish correction and produce a bearish reversal candle to go short in the pair. The level of 1.63850 may work as consolidation resistance. The price may find its next support around 1.62700. If the price does not consolidate or make a bullish correction, the price may get bullish around the level of 1.62700. If it gets bearish upon making a bullish correction, the next bearish wave may come out as a long wave.
Chart 3 EUR/AUD H1 Chart
The chart shows that the price made a long bearish move. It found its support around 1.63400 and consolidated by finding its resistance at 1.63600. At the last rejection, the level of resistance produced a doji candle. Since then the price has been heading towards the South. If the price makes a breakout at the level of 1.63400, the sellers may go short in the pair and drive the price towards the downside with good bearish momentum. The price may find its next support around 1.63000. On the contrary, if the price makes a bullish breakout at the level of 1.63600, the price may head towards the North and find its next resistance around 1.64000.
The daily and the H4 chart are bearish biased. However, they may take time to make a strong bearish move. The H1 chart seems to be ready to make a bearish move. Considering these three charts, it seems that the pair may end up producing another bearish candle in the daily chart.