Detailed FX Market Outlook and Analysis

Daily Forex Analysis – EUR/AUD – 21-June-2023

EUR/AUD Daily Forex Analysis

EUR/AUD Daily Forex Analysis

The Daily Forex Analysis indicates a significant shift in the EUR/AUD pair. The pair’s breach of 1.6105 resistance suggests that the corrective drop from 1.6789 has completed its three-wave pattern at 1.5850. This conclusion was drawn after achieving the 100% projection of 1.6789 to 1.6138, drawn from 1.6517 at 1.5866. The Intraday Analysis of EUR/AUD now leans towards the upside, targeting the next resistance at 1.6517. As of now, any pullbacks should be contained by the 1.5850 support.

Zooming out to the larger picture, the price movements from 1.6789 are perceived as a mere correction to the uptrend that originated from 1.4285 (the low of 2022). We anticipate solid support around the 38.2% retracement of the range from 1.4285 to 1.6789 at 1.5832, which should complete the correction’s first leg and trigger a rebound. Nevertheless, continuous trading below 1.5832 could increase the probability of a trend reversal, potentially targeting the 61.8% retracement at 1.5242.

EUR/AUD Daily Analysis Summary

In summary, the EUR/AUD pair shows a bullish intraday outlook with a focus on the 1.6517 resistance. The bigger picture suggests a possible end to the corrective fall from 1.6789, with a potential rebound from the 1.5832 support level.

Key Points:

  • The EUR/AUD pair shows a bullish intraday bias following a break of 1.6105 resistance.
  • Current price actions are viewed as a correction within an ongoing uptrend, with substantial support expected at 1.5832.
  • Prolonged trading below 1.5832 could indicate a trend reversal, with 1.5242 serving as a potential target.

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