EURAUD Bearish towards 1.40 but watch the 1D MA50

The EURAUD pair has been following our long-term perspective as illustrated more than a month ago:

As you see, the rejection on the 1D MA200 (orange trend-line) caused a strong sell sequence that came too close to testing the 1.4325 Support (April 05 Low). We remain well below the 1D MA50 (blue trend-line) with the RSI on Lower Highs. Within the multi-year Bearish Megaphone pattern that the pair has been trading in, there have been another two similar RSI patterns. The more recent (Oct - Nov 2021) managed to break above the 1D MA50 and reached almost its previous High/ Resistance. The older one (Jan 2021) got rejected on the 1D MA50 and reached as low as the 2.236 Fibonacci extension before rebounding.

As a result, if you took our short suggested 1 month ago, you may take the profit and re-open it if last week's Low breaks and target at least the 2.236 Fib (1.400). If on the other hand the price closes above the 1D MA50, open a buy and target 1.5350.



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