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Monthly Time Frame: Starting on the higher time frames we can see EURAUD has been on a bullish run, looking at the past few months. By reading the candles we can see price had a strong bullish engulfing that managed to engulf almost every candle in this monthly range. After the engulfing price managed to reject off of the moving averages and then breaking the 1.67750 key monthly psychological resistance.
Weekly Time Frame: Scaling down we can see a strong weekly engulfing candle which managed to finally break out of this short-term range, which created new highs. This week price managed to come down and test previous resistance as new support.
Daily Time Frame: Scaling down we can see a clearer picture of price retesting the 1.67750 quarterly psychological zone. If price manages to stay above this zone, then we can anticipate new highs to form and potential targets to fulfill. Although if price breaks back in range, we can anticipate 1.66000 or even 1.63500 key psychological.
4Hr Time Frame: Scaling down we can see how respected this monthly zone is, price managed to create a double bottom with two rejection candles, which then broke through this short-term consolidation and trend line. If price comes back to retest we can anticipate 1.71000 psychological. Due to the uncertainty of market fluidity, risk management is highly recommended.
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