EURAUD 4H next downside leg?
After seeing a negative unemployment rate reading for the Aussie Dollar we looked to have taken out any sign of Aussie strength in the market with the early morning pushes, however this has just given price a deeper retracement across all Aussie pairs with a potential opportunity for better entries and to minimise risk and maximise reward!
We see the above pair (EURAUD) come to the 50% FIB level which falls in alignment with a reaction level at 1.6270 which has been used as support and resistance on numerous occasions, with the push back up to this level we can see that we have formed our potential third lower high swing giving us a good indication that price may be gearing up for its last leg to complete the third drive!
I would like to see price come a little higher into our golden pocket (highlighted by the red box) which shows an imbalance in price and an order region which when triggered can put a lot of selling volume into the market at this level!
I will be keeping eyes on..!
Comment your thoughts on the analysis and write up above!