The EURAUD price is testing a monthly level of resistance, could the price break lower?
Watch the video to learn…
The price of EURAUD is rejecting a key monthly level of resistance which acted as support recently. The strength meter shows the EURO moving lower after reversing from the highs. This pair should be volatile in the next few hours due to the upcoming rate decision from the RBA. The RBA hiking rates could see the price rally initially into the highs where the price could find resistance for a move lower.
The price action on the monthly time frame shows the price climbing slowly back to the monthly resistance zone, when this happens we can often see a continuation of the original impulsive phase which broke the lows. Other technical factors to add confluence to a move lower is the break and rejection of last month’s high. This high being rejected suggests sellers are active at higher prices.
The 4hr time frame shows the price formed a lower high at the second rejection of the level, this lower high began with a long tail bearish candle. These candles show the momentum shifting from buyers to sellers. If the price was to retest this candle on the 4hr time frame and form bearish price action we could see the market roll over from here to test the most recent lows.
Did you see our recent Week Ahead Analysis video? You can see it here.
Enjoy low spreads and quick trade executions with a live account. Our highly committed customer support team will assist you from your quick account setup to any future concerns. Start trading with Blueberry Markets today.