EUR/AUD Hits A Downtrend Line And Slides

rallied on Thursday and Friday, but hit resistance at 1.5690, near the downside resistance line drawn from the high of Oct. 20, and then it retreated. In our view, as long as the rate continues to trade below that line, the downtrend remains intact and thus, we will adopt a cautiously bearish approach for now.

If the bears are strong enough to push the battle below 1.5510, marked by the low of Feb. 18, this may confirm the case for further declines and may initially pave the way towards the 1.5405 territory marked by the inside swing high of last Tuesday. If that barrier is not able to stop the decline either, then we may experience extensions towards the 1.5295 level, or the 1.5250 hurdle, marked by Thursday’s low.

Shifting attention to our short-term oscillators, we see that the RSI turned down and fell back below its 70 line, while the MACD, although above both its zero and trigger lines, shows signs of topping as well. Both indicators suggest that last week’s upside speed is decreasing, which adds to the case of seeing some further declines, at least in the short run.

In order to start examining the case of a bullish reversal, we would like to see a clear close above 1.5690. This may also take the rate above the aforementioned downside line and may encourage advances towards the high of Feb. 5, at 1.5765. Another break, above 1.5765, may set the stage for extensions towards the peak of Feb. 2 , at 1.5895, or the high of Jan. 28, at 1.5945.

EUR/AUD 4-hour chart technical analysis

EUR/AUD 4-hour chart technical analysis

Disclaimer: The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval. 79.07% of the retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure – .

This site uses cookies to offer you a better browsing experience. By browsing this website, you agree to our use of cookies.