EUR/AUD Faces Key Decision at 1.645 Support

On Tuesday, let’s take a closer look at EURAUD, which is currently at a critical juncture, challenging the key support level of 1.645. This support, marked in orange, has played an important role throughout the past few months. In August, it acted as a solid support, then briefly became a resistance, before reverting back to being a key support in September. This level has been tested multiple times, first a few weeks ago, and once again this week.

As of now, we are witnessing a bullish bounce, indicating that the support is holding strong, at least for the moment. A head and shoulders pattern, although not the cleanest, is visible and marked with green rectangle. The pattern’s structure is there, with a left shoulder, head, and right shoulder currently taking shape. This makes the 1.645 level even more crucial, as it now serves as both a key support and the neckline for this head and shoulders pattern.

If the price breaks and closes below the orange support, it would confirm a bearish signal, and we could expect further declines. Conversely, if the price continues to bounce and moves significantly higher, this would trigger a buy signal, indicating that the support is firmly defended. We’ll have to wait and see which direction the market chooses.

Source: https://www.axiory.com/analytics/technical-analysis/eur-aud-faces-key-decision-at-1-645-support