EUR/AUD: sell target - 1.5580
By: Dmitriy Chernovolov
- EUR/AUD falling inside primary impulse wave ③
- Next sell target - 1.5580
EUR/AUD continues to decline – following the earlier sharp downward reversal from the resistance zone lying between the resistance levels 1.6200 and 1.6000 (which has been reversing this pair from the end of August, as you can see from the daily EUR/AUD chart below). This resistance zone was further strengthened by the upper daily Bollinger Band and by the upper resistance trendline of the daily up channel from the start of December. The downward reversal from this resistance zone stopped the previous primary ABC correction ②.
With the clear bearish divergence visible on the daily Stochastic indicator - EUR/AUD is likely to fall further in the active primary impulse wave ③ toward the next sell target at the support level 1.5580.