EUR/AUD is making lower lows and the market structure is turning bearish as the price attempts to break the 1.64900 support level. Price is likely to break the 1.64900 support level on its fourth attempt.

I will wait for the price to break the 1.64900 support level before entering for short entries. The price is likely to drop to the 1.63600 support level in the coming days.

The price is likely to retrace to the 1.65335 resistance level before the drop. The 1.65335 is the key level as the price was unable to break this despite multiple attempts and will likely push the price down again.

Fundamentally, the price of EUR/AUD will possibly remain volatile as there are high impact news on almost all currency pairs. Tomorrow the Judo Bank manufacturing and services data will be published. If that turns out positive the price of EUR/AUD will drop.

Moreover, there is impact news due on the USD like GDP growth in Q4 and the jobless data this week. If the data turns out positive for the US dollar the price of EUR/AUD will go and if negative the price will drop, as the AUD and USD usually move against one another.

• The price of  EUR/AUD is likely to drop further if it manages to break the 1.64900 support level.
•  The price is likely to drop to the 1.63600 support level in the coming days.
• Multiple take-profit levels have been added to secure profit along the way.
• The risk-to-reward ratio on this trade is 1:3.3.
• The entry and stoploss prices have been placed at secure levels with the least probability of getting hit.
• Good luck!

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