The EURAUD has fired off an live bullish engulfing bar (BUEB) on the daily price action chart. Price on the EURUAD has been in a solid up-trend for the past five months with price making higher highs and higher lows. Price in the last week has retraced lower back into the major support level. This support level has previously acted as a very solid old resistance level before price busted through and moved higher.
Price has now retraced and moved lower to test the old resistance level and at this stage it is holding as new support. Price has formed a BUEB at this same support level. This support level is also in-line with the 50% Fibonacci level from the last swing low to the recent swing high level.
If price can break the high of the BUEB we may see price move on higher to test the recent swing high around 1.4900. For price to have any chance of moving higher price would have to break out of the BUEB’s high. If price moves lower, this major support is the first test for any major moves lower. If this major support gives way, then a new trend lower may be on the cards and a switch from looking for long trades to short trades could be the play to start looking for. If that occurs I will update in this blog.
EURAUD DAILY CHART
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