EURAUD has been in an uptrend since Feb 2017 and the HH’s and HL’s show us that. However, Wednesday’s close put an end to this when the bears took out the 1.5770 handle and this is also a confluence of resistance handle. I expect a re-test of this area as new resistance which should attract an influx of selling pressure. Our first key target will be at 1.5620 support zone and this depends on whether or not the bears can defend the confluence of resistance at 1.15770. I will remain cautiously bearsh as long as 1.5770 holds as new resistance and this is mainly due to the uptrend that’s been in place for over a year. A Daily close back above the 1.5770 zone would negate the bearish outlook and open up to 1.5890.

EURAUD DAILY - 17 MAY 2018

Source: MARYNA MURRAY

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