EURAUD: Bears Will Dominate Soon

The EURAUD pair may continue the sliding movement.
The bull’s pressure may subside.

EURAUD Weekly Price Analysis – October 19

The EURAUD market suggests more drops and bears will dominate soon as the pair begins the bearish trend. Therefore, if the bears could add an aggressive force to their actions, the currency pair price may slide to a $1.72 previous support value and extend the lows to $1.66 lower support level as the bears aim to drag the market price down, suggesting a sell signal.

EURAUD Market
Key Levels:
Resistance levels: $1.82, $1.83, $1.84
Support levels:     $1.72, $1.71, $1.70

EURAUD Long-term Trend: Bullish (Daily Chart)

The EURAUD pair is in an upward trajectory on the higher time frame. Despite the bears’ pressure, the price remains above the moving average, indicating a bullish trend.
However, there is likely to be a possible breakdown as the selling pressure has just begun.

The sustained bullish pressure at $1.80 in the last session has enabled the currency pair price to remain above the supply trend levels at its recent low.

Today, action from the bears dropped the EURAUD price to $1.79 support mark above the EMA-50, suggesting the returns of the short traders to stage a play.

Hence, to predict a bearish move in the market below the resistance level, sellers must step up their efforts.

Therefore, a strong breakdown below the $1.72 prior support level would strengthen the bearish pressure.

In addition, the price of EURAUD is facing down at the overbought region of the daily stochastic, suggesting the bears will dominate soon. As a result, the price action could drop to a $1.66 lower support trend level in the days to come.

EURAUD Medium-term Trend: Bullish (4H)

The EURAUD pair is bullish on the 4-hour chart, with the price above supply levels.
Sustained bullish pressure at $1.80 recently kept the price above key levels after its recent drop.

As the 4-hourly chart opens today, the EURAUD price action declines sharply to the $1.79 support level, indicating that the bearish pressure will resume sooner.

Therefore, the pair price may remain stable at the bottom and halt any further bullish gains if the selling pressure continues and the bears close the medium chart below the previous lowest point of $1.75.

Notably, the bears will soon take over, as indicated by the daily stochastic oscillator pointing lower at the 38% level. Therefore, as we observe the EURAUD bears taking the lead soon, the next negative correction phase could reach a low at $1.70 support level in the coming days.

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