The Euro is trading in a descending triangle against the Australian Dollar with its lower boundary fixed near the 1.4830 mark.
The given pattern was formed after the hourly fall on August 4 breached the lower boundary of a channel up. Descending channel is a bearish pattern that should guide the pair south irrespective of its previous direction.
Thus, a breakout to the downside is a more probable scenario. Nevertheless, it is yet to be seen if it occurs right away. It is more likely that the Euro falls down to the 23.6% Fibonacci retracement which is supported by the 200-hour SMA and the weekly PP circa 1.4840, reverses and provides another upside confirmation prior to breaching to the downside.
The nearest resistance is provided by the 55– and 100-hour SMAs at 1.4896, while nearest support—the aforementioned 1.4840 area.
The given pattern was formed after the hourly fall on August 4 breached the lower boundary of a channel up. Descending channel is a bearish pattern that should guide the pair south irrespective of its previous direction.
Thus, a breakout to the downside is a more probable scenario. Nevertheless, it is yet to be seen if it occurs right away. It is more likely that the Euro falls down to the 23.6% Fibonacci retracement which is supported by the 200-hour SMA and the weekly PP circa 1.4840, reverses and provides another upside confirmation prior to breaching to the downside.
The nearest resistance is provided by the 55– and 100-hour SMAs at 1.4896, while nearest support—the aforementioned 1.4840 area.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.