EUR/AUD recovered after its down trend reached 1.5774 last week, and ActionForex expects consolidation first. The bearish outlook holds while the pair stays below resistance and moving-average levels, with 1.5359 as the next target.
EUR/AUD's down trend continued to 1.5774 last week before the pair recovered. ActionForex says the initial bias stays neutral this week, with consolidations first.
However, the analysis still points lower. Further decline is expected as long as 1.6078, support turned resistance, holds. The next target is the 1.5359 projection level.
On the larger timeframe, the down trend from 1.8554, the 2025 high, is in progress. The 1.5359 target is the 61.8% projection of 1.8160 to 1.6125 from 1.6617. A firm break there would target the 100% projection at 1.4582.
Meanwhile, the outlook remains bearish as long as the 55 W EMA, now at 1.6559, holds in case of a rebound.
Over the longer term, ActionForex sees the fall from 1.8554 as the third leg of the pattern from 1.9799, the 2020 high. That pattern is part of the one from 2.1127, the 2008 high. A deeper fall should be seen to 1.4281 and possibly below, and this stays the favored case as long as the 55 M EMA, now at 1.6523, holds.
Source: ActionForex
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