For EURAUD, I will be mainly looking at 2 important level now: Trend Support and Support Line @1.6078. Rather interesting movement can be see for EURAUD. Today's candle show us a clean rejection off the support level @1.6078 heading towards the bullish side. As for the trend support level, what we saw was a breakthrough off the trend support level, BUT now heading back in trend. Having said that, what we saw was a fakeout from the trend support level and we can clearly see EURAUD obeying its trend BULLISH CLIMB.
What will we be looking at now?
We will be seeing potential bullish movement to the resistance level @1.6660 where we could see a potential rejection testing back the support level before we see it heading for trend resistance level. Also, if we use fibonacci retracement, we can see that 23.6 fib level is an important level for us to watch out if we will like to see a continuation BEARISH movement where a breakout from trend can be seen. However, having said that, I am BULLISH as of now and trade the short term BULLISH movement before we consider taking a short position at the 23.6 fib level.
What will we be looking at now?
We will be seeing potential bullish movement to the resistance level @1.6660 where we could see a potential rejection testing back the support level before we see it heading for trend resistance level. Also, if we use fibonacci retracement, we can see that 23.6 fib level is an important level for us to watch out if we will like to see a continuation BEARISH movement where a breakout from trend can be seen. However, having said that, I am BULLISH as of now and trade the short term BULLISH movement before we consider taking a short position at the 23.6 fib level.
