You are here: Home > articles > Forex > Technical Analysis – EURAUD downside pressures intact in sideways channel in near term
Technical Analysis – EURAUD downside pressures intact in sideways channel in near term
October 19, 2018 12:26 pmVideo
Latest News
- Outlook for EUR/USD on April 17. A boring Monday seamlessly transitioned into a boring Tuesday April 17, 2024
- Will the euro manage to save itself? April 17, 2024
- Analysis for GBP/USD on April 16th. The pound should not count on support from Powell April 16, 2024
- Analysis for EUR/USD on April 16th. The southern trend has been put on pause for correction April 16, 2024
- USD/JPY: Simple trading tips for novice traders on April 16th (US session) April 16, 2024
- GBP/USD: Simple trading tips for novice traders on April 16th (US session) April 16, 2024
- Trading Signals for GBP/USD for April 16-18, 2024: buy above 1.2405 or 1.2450 (21 SMA – 0/8 Murray) April 16, 2024
- EUR/USD: Simple trading tips for novice traders on April 16th (US session) April 16, 2024
- AUD/USD: Australian dollar remains under pressure April 16, 2024
- GBP/USD: trading plan for the US session on April 16th (analysis of morning deals). The pound was quickly bought back around April 16, 2024
- Trading Signals for BITCOIN (BTC/USD) for April 16-18, 2024: buy above $62,500 (4/8 Murray – 21 SMA) April 16, 2024
- Technical Analysis – USDCAD blossoms ahead of central bank speeches April 16, 2024
- EUR/USD: trading plan for the US session on April 16th (analysis of morning deals). Fewer people are willing to sell euro April 16, 2024
- EUR/USD. April 16th. Bears continue to advance against the backdrop of strong US statistics April 16, 2024
- Euro, sterling extend weakness April 16, 2024
- GBP/USD. April 16th. British statistics didn’t capture traders’ attention April 16, 2024
- Technical Analysis – EURCHF ticks up after strong losses April 16, 2024
- Technical Analysis – JP 225 index tests crucial support zone April 16, 2024
- Market Comment – Stocks slide, dollar soars as rate cut bets take another hit April 16, 2024
- Forex forecast 04/16/2024: EUR/USD, USDX, Gold and SP500 from Sebastian Seliga April 16, 2024
EURAUD has declined considerably over the last couple of weeks after it found strong resistance obstacle on the more than three-year top of 1.6350. The price dipped below the simple moving averages (20- and 40-SMAs) which are ready to post a bearish crossover soon. It is worth mentioning that the price seems to be in a narrow range over the past two months with upper boundary the 1.6350 high and lower boundary the 1.5980 support.
Turning to the technical picture, the MACD oscillator is falling below the trigger line and is approaching the zero line, while the RSI indicator slipped below the 50 level, indicating losses in the near term.
Should prices decline further, immediate support could be found around the 1.5980 support level, identified by the latest lows on October 1. A close below this level could change the current scenario to bearish and the price could challenge the 1.5730 barrier, which stands marginally above the 23.6% Fibonacci retracement level of the upleg from 1.3620 to 1.6350.
On the upside, if the pair creates a bullish rally and overcomes the moving averages, the price could meet resistance at 1.6350. Above this level, the next barrier for investors to have in mind is 1.6590, identified by the top on August 2015.
In the long term, the bullish outlook remains intact since February 2017, but in the short-term the bias is turning more neutral to bearish.
Related Posts: