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FxWirePro: Strong channel resistance for EUR/AUD at 1.5095, good to sell rallies

EUR/AUD price action re-enters daily cloud, but trend is definitely lower.

  • Strong resistance is seen by channel top at 1.5095. The pair has been trending lower with the falling channel, with upside being restricted by channel top.
     
  • RSI is also converging with the drop in prices, while Stochs are in a neutral territory.
     
  • The pair has been stuck in a range between 1.5343-1.4863 since its bounce from channel base (Dec 3rd). 
     
  • We notice downside capped by daily tenkan at 1.4845, while a decisive break above channel top could see gains to 1.54 levels.

Recommendation: Good to sell EUR/AUD rallies around 1.5060, SL: 1.5150, TP: 1.49

Resistance Levels:

R1: 1.5092 (Session highs Jan 5th)

R2: 1.5095 (Channel top)

R3: 1.5154 (Dec 23 high)

Support Levels:

S1: 1.5023 (cloud base)

S2: 1.4992 (Session low Jan 5th)

S3: 1.4954 (Dec 10 lows)

 

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