EUR/AUD Our expectations: Rising trend, correction to diagonal support. Opportunity for long positions with SL 1.5449.
Alternative scenario: If the price fails to maintain its positions and dips below the support, the correction might test the 200 DMA. This level coincides with the 38.2% Fibo, measured from the movement, started with the bottom on 20.07.2017 to the high on 28.03.2018. Price action signal of a pin bar on key support levels. As the chart shows, last couple of times when the price made a test of the support and formed a price action signal, it made a new local high afterwards. First serious resistance level comes with the ex- support, now resistance at 1.5842. If we close our longs around these levels, the Risk/Reward Ratio will be 1/2. DeMarker is turning from over-sold areas. For the last year, this is the lowest level for the indicator and every time, that it turned from that zone, the price followed swiftly.
SL: 1.5449
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