EUR/AUD Technical Outlook: Monthly Price Reversal Under Review

EURAUD topsy-turvy off a vicious insurgency operation final week and we’ve been tracking a pullback in cost as a span approaches halt support during a 2017 high-day close. The span has continued to trade within a weekly opening-range though we’re looking for a probable relapse reduce before resumption of a broader up-trend.

EURAUD Daily Price Chart

EUR/AUD Price Chart - Daily Timeframe

Technical Outlook: In this week’s Technical Perspective we highlighted that EUR/AUD had, “posted a weekly annulment candle final week off vicious insurgency during 1.5952-1.6018– a segment tangible by a 78.6% retracement of a 2015 decrease a 100% prolongation of a 2017 allege and converges on a median-line of a extended descending pitchfork arrangement fluctuating off a 2011 2012 lows. Divergence in a movement form serve highlights a hazard of a deeper pullback here.

The sell-off rebounded off halt support during a 2017 high-day tighten during 1.5622 early in a week with prices branch once again from a 2017 highs during 1.5771 in early Asia trade. The evident concentration is on a mangle of this near-term operation with a risk for a incomparable improvement while next 1.58.

New to Forex Trading? Get started with this Free Beginners Guide

EURAUD 120min Price Chart

EUR/AUD Price Chart - 120min Timeframe

Notes: A closer demeanour during EUR/AUD cost movement shows a span trade within a proportions of a near-term descending channel formation fluctuating off a monthly highs with a upper parallel highlighting a near-term bearish cancellation spin during a 1.58-handle. A mangle next 1.5622 is indispensable to countenance a broader spin with such a unfolding targeting a reduce together / 61.8% prolongation during 1.5573 corroborated by a Jan high during 1.5498 and a Fibonacci connection around 1.5423/38.

Why does a normal merchant lose? Avoid these Mistakes in your trading

Bottom line: EURAUD is has set a well-defined weekly opening-range only above multi-month support. From a trade standpoint, I’ll preference offered strength sub-1.58 targeting a mangle of this range. Ultimately a mangle reduce would have us looking for some-more auspicious long-entries nearby broader constructional support, now around ~1.54. A crack above 1.58 invalidates a annulment play with such a unfolding targeting pivotal insurgency behind during 1.5952-1.6018.

For a finish relapse of Michael’s trade strategy, examination his Foundations of Technical Analysis series on Building a Trading Strategy

Relevant Data Releases

EUR/AUD Economic Calendar

Other Setups in Play

– Written by Michael Boutros, Currency Strategist with DailyFX

To receive Michael’s research directly, greatfully sign-upto his email placement list

Follow Michael on Twitter @MBForex or hit him during

About author

Budget to crack down on black economy

Video Image PM Malcolm Turnbull has ordered the consumer watchdog to review retail electricity prices. The Turnbull government is expected to begin clawing back lost ...