EURAUD has been trading in a bearish descending channel for the majority of Q4 as prices continue to tumble to 2-year lows.
The current hidden bearish divergence noted on the momentum indicator looks to continue the trend.
Since the latest attempt to move above the mean, prices have been met with strong resistance as a double bottom is apparent.
Should prices break the specified level, then further downside is expected.
A look on the intraday chart eyes a potential bounce at the recent double bottom area. Should prices accelerate to the upside, then another attempt to the high-1.57 level could come into fruition.
A move past the Ichimoku cloud would negate the recent bearish divergence hinted at on the momentum indicator.
Monthly highs could then ensue, with the cloud being in the distance leading to the bias remaining in bull territory.
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