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FxWirePro: EUR/AUD retraced 61.8% fibo levels – volumes confirm more dips on cards

The pair in retracement mood: It has retraced more than 61.8% at 1.4774 last week, we began this week with day high rejection at 1.4756.

The above retracement has been achieved after the formation of Gravestone doji (1.5584) and long legged doji at 1.5890.

Please be noted that we reiterate even though prices are showing little strength today, as it has failed to sustain 1.4756 (which is around 61.8% retracement areas), slid well below 10DMA curve to confirm the extension of long term bearish trend.

More importantly, we get confirmation for bearish continuation through rising volumes.

Leading oscillators on weekly and monthly charts are converging these bearish sentiments.

RSI curve is consistently trending below at 41.5754 which is in tandem with price drops.

While %D line crossover has been maintaining beautifully even below oversold trajectory (current %D is at around 5.3730 and %K is at 4.5585).

Overall now the pair is dropping for 1.4346 (76.4%) which is next significant Fibonacci juncture.

In our opinion on these technical reasoning, it is better to use any abrupt rallies after the 61.8% retracement for short build ups, stay calm with earlier ITM long puts and any minor upswings can be utilized OTM put writings.

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