EUR/AUD may fall 57 - 85 pips

Our pivot point stands at 1.6193.

Our preference

The downside prevails as long as 1.6193 is resistance.

Alternative scenario

Above 1.6193, look for 1.6239 and 1.6267.

Comment

The RSI is below 30. It could either mean that the pair is in a lasting downtrend or just oversold and therefore bound to retrace (look for bullish divergence in this case). The MACD is negative and below its signal line. The configuration is negative. Moreover, the price stands below its 20 and 50 period moving average (respectively at 1.6165 and 1.6194). Finally, the EUR/AUD is trading below its lower Bollinger band (standing at 1.6146).

Supports and resistances

1.6267 **

1.6239 *

1.6193 **

1.6175

1.6137 last

1.6080

1.6052 **

1.6025 *

1.5997 **

Number of asterisks represents the strength of support and resistance levels.