EURAUD: Bears charging at strong resistance

The daily chart of the EURAUD pair presents some signs of pause for the bullish movements started in the 1.3670 regions.

Struggle around the median line of Pitchfork channel continues for the consecutive fifth day, while buyers are booking profits near the tough resistance –colored in blue- as seen on the provided graph.

euraud-10-06-2015-fxcomment

In the interim, Stochastic reflect the weak momentum, attempting to get out from overbought territories, while +DI started to move slightly downwards, as the trend is slowing down.

Consequently, we prefer selling the EURAUD, chiefly targeting 1.4450 and 1.4360 respectively. On the other side, 1.4780 should act as a ceiling for bears.

Amir El Araby

Co-Founder & Chief Global Strategist at FxComment.com, with 17 years’ experience in the technical analysis studies for FOREX, Commodities and Indices. Amir El-Araby worked as a mentor for many companies and institutes, where he presented new methods for trading in the financial market. Amir is a member of ESTA (Egyptian Society of Technical Analysts). Amir is also the official partner of Harmonic Trader (Mr Scott Carney) and the official instructor of harmonic trader association for Arab countries.

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