EURAUD testing support, potential bounce!

3 במאי 2018

Price is testing our first support at 1.5925 (horizontal pullback support, 61.8%, 76.4% Fibonacci retracement) which coincides with our long term ascending support line. A strong bounce might occur above this level, pushing price up to our major resistance at 1.6003 (horizontal overlap resistance, 38.2% Fibonacci retracement) which coincides with the short term descending resistance line.
Stochastic (55,5,3) is also seeing a bullish divergence and is approaching our major support and a bounce off this level might be a good precursor for a potential rise in price.
Trading CFDs on margin carries high risk.
Losses can exceed the initial investment so please ensure you fully understand the risks.