EUR/AUD Bullish Retracement Or Reversal Despite Downtrend

EUR/AUD is showing bullish reversal or retracement signals. This article reviews the reversal signs and analyses the two main scenarios for this currency pair.

The EUR/AUD has 6 daily candles failing to break for a new low. This indicates the end of the bearish price swing and the start of a bullish price swing.

The current bullish swing is likely to be a retracement. The main target is the 38.2% Fibonacci retracement level where a new downtrend could emerge (red arrows).

Price Charts and Technical Analysis

There are also other signals that confirm this:

  • Double bottom pattern

  • Break above the resistance trend line

  • Bullish daily candles

  • HMA 20 is up

  • Oscillator momentum is bullish (blue)

  • Higher high

The overall direction, however, could remain bearish due to the lack of divergence. This is why the bearish swing has been labeled as a wave 3 (pink) of wave C (purple).

Only a break above the resistance trend line (orange) plus the 21 ema zone and the emergence of an uptrend channel (green lines) could indicate an uptrend (blue arrows). This indicates the end of the downtrend and wave C (purple).

On the 4 hour chart, price action is expected to make one push up (green arrows). Although price could dip first to test support. The bullish retracement remains likely as long as price action stays above the Wizz 6 level.

The Wizz 5 level and 144 ema zone could act as a key resistance. A strong bearish bounce confirms the downtrend (red arrows). A break above the Wizz 5 level indicates a new uptrend (blue arrows).

Recent Posts

See All



Trading involves the possibility of financial loss. Only trade with money that you are prepared to lose, you must recognize that for factors outside your control you may lose all of the money in your trading account. Many forex brokers also hold you liable for losses that exceed your trading capital. So you may stand to lose more money than is in your account. Smart Analysis Pvt takes not responsibility for loss incurred as a result of our trading signals. By signing up as a member you acknowledge that we are not providing financial advice and that you are making a the decision to copy our trades on your own account. We have no knowledge on the level of money you are trading with or the level of risk you are taking with each trade. You must make your own financial decisions, we take no responsibility for money made or lost as a result of our signals or advice on forex related products on this website.


Credit  & Debit Card

  • Black Facebook Icon
  • Black Instagram Icon
  • Black YouTube Icon

© 2023 by Personal Life Coach. Proudly created with