Last Saturday, I discussed what could be a massive bearish reversal pattern on the EURAUD weekly time frame.
Here’s the weekly chart again in case you missed it:
EURAUD has carved a long-term trend line since July 2019.
Before December, the level was holding as support hence the multiple bounces from this level since its inception.
However, as I mentioned last Saturday, that changed a couple of weeks ago.
The December 10th close below trend line support near 1.6150 flipped the level to resistance.
It also confirmed what could be a 2,400+ pip head and shoulders pattern.
You can even see how the area has attracted buyers on the daily chart.
As long as the EURAUD remains below 1.6170 on a weekly closing basis, I like the pair lower from here.
The first key support comes in at 1.5700 or just above it.
That’s the area that served as support in the first few months of 2019.
Below 1.5700, we have 1.5230, followed by 1.4600.
If the price action since 2019 is indeed a head and shoulders reversal, targets like 1.4600 aren’t out of the question.
Of course, it will likely take EURAUD several months to get there, if at all.