• EURAUD reversed from multi-year resistance zone
• Further losses likely toward 1.6290

EURAUD under pressure following the earlier downward reversal from the powerful multi-year resistance zone located between the resistance levels 1.6590 (yearly high from 2015) and 1.6670 (multi-month high from January of this year) and the upper weekly Bollinger Band. The downward reversal from this resistance zone created the weekly Japanese candlesticks reversal pattern Bearish Engulfing – which follows the earlier weekly reversal pattern Dark Cloud Cover. Given the strength of the aforementioned resistance area – EURAUD is likely to remain under pressure in the coming trading sessions. Nearby downward target stands at the support level 1.6290 – followed by 1.6220 (top of the previous minor correction (b) from July).