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EURAUD Finds Selling Pressure at a Familiar Level

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After breaking trend line support on February 17th and subsequently retesting it as new resistance on the 18th and 19th, EURAUD has found selling pressure at a familiar level. The 1.5340 handle has played a role since the year 2000 but is more identifiable as the prominent swing high in December of 2014.

While yesterday’s price action may be a bit too “loose” for some to call it a bearish pin bar, it is certainly a bearish rejection from the new resistance level. That said, the pair remains marginally extended from the mean, which in this case is represented by the 10 and 20 exponential moving averages.

With this in mind, we could see price move back up to retest the 1.5340 area before an eventual move lower. Speaking of, the next level of support comes in at 1.50, giving traders approximately 330 pips to work with.

A daily close below 1.50 would expose trend line support that extends off the April 2015 low. At the moment that level would come in near 1.4700.

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EURAUD bearish rejection at key resistance

 

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