EURAUD: May experience a long term trend shift

EURAUD is touching at the moment the bottom of the Channel Up pattern that has been in place for 10 months. The 1D time frame is technically almost oversold (RSI = 32.980, MACD = -0.011, ADX = 36.222) with the RSI in particular last time it was that low was in July 28th 2022.

If the price doesn't rebound on the current level, we expect a test of the 1D MA200. In that case, we may see a long term trend shift from the Channel Up to a newly formed Channel Down, which on the next rebound near the 1D MA50, will give us a low risk sell entry targeted at S2 (TP = 1.52650).

If the price closes a 1D candle over the 0.5 Fibonacci level, we will buy the Channel Down break out and target the Resistance (TP = 1.67850).


Prior idea:


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