What I see
On the D1 chart, EUR/AUD is in a long-term downtrend. Price is at 1.5829 and has closed below the W1 support zone marked AL Support W1 #22, which spans 1.58475 to 1.5996. I consider this zone broken.
Key levels
- 1.58475: lower edge of the broken support zone
- 1.5996: upper edge of the zone
- 1.5900: the area where I expect price to pull back
- 1.53549: the next support, marked on my chart
My plan
After the break, I expect price to return somewhere toward 1.5900, back into the lower part of the former support, which could now act as resistance. If the market fails there, I am planning for a further decline toward support around 1.5350.
If price instead climbs back above 1.5996 and holds there, my idea of a support break no longer applies and I will reassess the scenario.
