EURAUD bottoms at a key cluster of support. The area defines risk for longs now. A bottom is defined.
Stay above would define the bottom if it can hold
The EURAUD bottomed today at a key area. That area is defined by the
- 100 and 200 bar MA on the 4-hour chart,
- A trend line connecting April 13 and April 19 lows,
- Swing levels from April 18 and 19 (see red circles), and
- The 50% retracement.
All that comes in at 1.5957 to 1.5968 area. That is a key cluster of support.
We currently trade around the 1.6000 level.
What next?
With all that support at the 1.5957-68 area, that now becomes a key line in the sand for the buyers (and sellers). Stay above is more bullish. Move below and the longs liquidate more and the price goes lower.
The buyers off the dip get more confidence on a move above the 200 hour MA (green line at 1.6004). That will have the shorts questioning their position, and give the buyers more confidence to add to their positions.
Right now, that 200 hour MA is trying to hold (which is ok). On a dip, though, look for buyers to come in, with risk on a break of the cluster of support. All that stuff at the 1.5957-68 should make for a tough nut to crack.
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