Forex Analysis: EURAUD

Today, we are looking at the EURAUD Weekly-Chart for our Forex Analysis. As always, I limit my analysis to the most important levels for my trading. Less is often more here. In the Weekly-Chart, I have only marked a trendline, which define a clear resistance to the top. We see that the course has been able to produce lower low- and lower high-points, what indicates a downtrend.  The high-Points here build the negative trendline. I like how clear the reactions were on the discussed line. Also nice to see at the long wicks towards the line. These show that the course could not close so high and bounced down. We have now a long correction behind us, which is probably ending with the touch of the trendline. Here I especially like the current weekly-candle. The candle is very large and encloses the bodies of the previous candles. It shows a clear reaction here.

Now let's look more closely at the touch of the trendline in the Daily-Chart. The course could drop to the last low-point. There could be another try to break the trendline upwards. For example, a short trade can be opened on a second return to the line. A higher price improves the risk / reward ratio. This means that the possible gain increases and the possible loss reduces. I will keep you informed about this pair.