Yahoo Finance Correction on the EURUSD is bigger than expected. AUDJPY with a nice bearish setup
The correction on the EURUSD accelerates. The price did not stop on the 38,2% and 1.1730. We are clearly aiming the 50% Fibonacci along with the upper line of the recent big flag formation. As long as we stay above the neckline (green area) the sentiment is still positive but the situation for the buyers is not so comfortable as it was a few days ago.
Oil is still above the 55.10 USD/oz and the buy signal is still with us. As long as we stay above this area, buyers have bigger chances for a mid-term success.
AUDJPY recently broke two important supports: up trendline and a horizontal one around 85.8. Now it is time to test the 85.5 as a closest resistance. Along with the horizontal area, we do have a mid-term down trendline there and the potential correction equality pattern. Bearish price action in this area can be an excellent selling opportunity.
This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis
This article was originally posted on FX Empire
