EUR/AUD is ready for a descending wave

Ascending trendline is broken

On EUR/AUD chart, the price line started an ascending wave on 29th of October 2021. The price then could increase more than 5.3 % until 3rd of December 2021 and then started a descending phase. After breaking below the support level, on 23rd of December, the price is now having a retest of the broken support level.

            Chart Notes: 

           • Chart time-zone is UTC (+03:00)

           • Candles’ time-frame is daily.


The price at the moment is on 1.578 which would be on a strong resistance level. The area equals to the flat of Ichimoku cloud as well as the dynamic resistance , shown as a blue line and also the broken dynamic support which might act as a resistance level on the up coming possible encounters with the price line. level 0.382 of the Fibonacci retracement also lays around the current position of the price line. In case the area can resist once more, sellers can enter the market and target 1.53565 as their TP. Please consider that in case the price line breaks above  1.59139, the chance for the descending wave reduces significantly. 

• DISCLAIMER: Please note that the above analysis is not an investment suggestion by “Capitalcore Ltd”. This post has been published only for educational purposes.