EUR/AUD made a firm drop, down from 1.98 high, which was set in March. We can see that price made a five-wave development, which is the first evidence for a bearish trend being made. That said, a five-wave movement labeled as wave A/1 has also found a low in June, so recent recovery can belong to correction within a trend (wave B/II).

We are observing an A, B, C move, which can face resistance at the 1.677/1.745 level, or if price makes a deeper correction at the Fib. the ratio of 50.0 or 61.8 (1.79/1.83 level).

EUR/AUD, daily