EURAUD testing resistance, potential drop!

EURUAUD is testing our first resistance at 1.5897 (horizontal overlap resistance, 61.8%, 100% Fibonacci extension, 38.2% Fibonacci retracement) which coincides with our short term descending support line. A strong reaction might occur below this level, pushing price down to our major support at 1.5787 (horizontal overlap support, 76.4% Fibonacci retracement, 61.8%, 100% Fibonacci extension). Ichimoku cloud is also showing signs of bearish pressure, in line with our bearish bias.

RSI (89) is also approaching our major descending resistance and a reaction off this level might be a good precursor for a potential drop in price.

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