Technical Analysis – EURAUD sell-off hopes might be premature
June 29, 2023 3:28 pm
EURAUD is edging lower today, bouncing off both the February 15, 2023 upward sloping trendline and the 1.6583 level. This is actually the first red candle after nine consecutive green days, as the bears are desperately looking to recover some of their recent losses and hoping to reestablish the pattern of lower highs and lower lows.
Today’s price action, though, appears to counter the message coming from the momentum indicators. The Average Directional Movement Index (ADX) is pointing to the strongest bullish trend since the August-October 2022 upleg. In addition, the stochastic oscillator continues to move higher, building a considerable gap from its moving average, and thus still signaling a bullish tendency.
Should the bulls decide to retake market control, they would try to keep EURAUD above the 1.6435 level and then test the resistance set by the August 24, 2015 high at 1.6583. Even higher, the bulls would have the chance to overcome the recent high of 1.6785 and register a new 2023 high.
On the other hand, the bears would love for today’s bearish move to continue and thus lead EURAUD towards the busy 1.6194-1.6288 area. This range has repeatedly proved its importance and it is currently defined by the February 11, 2016 high, the 50-day simple moving average (SMA) and the 23.6% Fibonacci retracement of the August 26, 2022 – April 26, 2023 uptrend respectively. If successful, the 100-day SMA at 1.6149 will most likely prove an easier barrier for the bears.
To sum up, EURAUD bears could finally crack a smile today but the overall technical picture remains on the bulls’ side.
EURAUD is edging lower today, bouncing off both the February 15, 2023 upward sloping trendline and the 1.6583 level. This is actually the first red candle after nine consecutive green days, as the bears are desperately looking to recover some of their recent losses and hoping to reestablish the pattern of lower highs and lower lows.
Today’s price action, though, appears to counter the message coming from the momentum indicators. The Average Directional Movement Index (ADX) is pointing to the strongest bullish trend since the August-October 2022 upleg. In addition, the stochastic oscillator continues to move higher, building a considerable gap from its moving average, and thus still signaling a bullish tendency.
Should the bulls decide to retake market control, they would try to keep EURAUD above the 1.6435 level and then test the resistance set by the August 24, 2015 high at 1.6583. Even higher, the bulls would have the chance to overcome the recent high of 1.6785 and register a new 2023 high.
On the other hand, the bears would love for today’s bearish move to continue and thus lead EURAUD towards the busy 1.6194-1.6288 area. This range has repeatedly proved its importance and it is currently defined by the February 11, 2016 high, the 50-day simple moving average (SMA) and the 23.6% Fibonacci retracement of the August 26, 2022 – April 26, 2023 uptrend respectively. If successful, the 100-day SMA at 1.6149 will most likely prove an easier barrier for the bears.
To sum up, EURAUD bears could finally crack a smile today but the overall technical picture remains on the bulls’ side.
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