EUR/AUD is currently seen undergoing a correction. However, this correction has not been able to diminish the solid bullish sentiment.

Hi fellow traders! EUR/AUD appears to have weakened again at the close of trading on Friday (March 31st). The pair corrected and began to decline after failing to reach its highest price. However, the correction has not been able to erode the strong bullish sentiment. Therefore, buying options are still the main scenario for now.



Analysis and Recommendation

Let's take a look at the following EUR/AUD H4 chart below: 

euraud 2

From the H4 chart above, it has been pointed out that this pair is currently correcting toward the demand zone of 1.6135 - 1.6045. Considering the bullish sentiment is still strong, wait for a long opportunity when a rejection pattern or bullish signal forms around the demand zone. However, be aware if no reversal pattern or bullish signal forms. A break below the level of 1.6045 will bring this pair further down towards the deeper demand zone, around 1.5917 - 1.5830. Below are two trading scenarios that can be prepared:

  • Therefore, set a long position at 1.6135 when the price manages to enter the demand zone, and a bullish signal confirms it. Stop loss may be positioned at 1.6045, while the profit target is at 1.6335.
  • Alternatively, set a short position at 1.6045 when a significant breakout signal confirms it. Stop loss may be positioned at 1.6135, while the profit target on 1.5917.

Keep in mind to always use risk and money management before trading! In addition, to make use of trailing stops, don't forget to exit the market as soon as you find a reversal signal!

EUR/AUD key levels:

  • Resistance: 1.6335, 1.6253
  • Support: 1.6135, 1.6045, 1.5917, 1.5830