Comparing to Stochs, there seems to be a 'Hidden Divergence' in play here?
However, if price declines, 1.40505 is now a strong . If it holds declines, then EURAUD could push higher. I expect this to be tested next Tuesday during RBA's meeting.
A break below 1.40505 will then see 1.37283 being tested.
Also Q2 is on average a down qrtr for EURAUD (while it is an up quarter for Euro and Aussie against the dollar). So while we will see some dips, question is of course, how much of a dip.
Fiction aside, i've been testing a new method and based on this model, EURAUD should be correcting soon to 1.39306 (let's round it off to 1.395).
1. There is bearish divergence from 1.40588 to 1.44376. This is normal. So we currently assume a correction to the uptrend is in play (because EMA's are aligned for uptrend).
2.1.40588 will then be critical. A break below that will then see the bearish divergence come into play, with Stochs making lower low on price making higher low.
3. Finally, if Stochs to make a lower low in comparison to the low from 16/03, then 1.379 (rounded off) is very possible.
So to put it simply, 1.40588 is the first downside target. And a retest to 1.43188 cannot be ruled if the longer term bearish trend comes into effect.