Technical Analysis – EURAUD trades sideways as market participants take stock of the recent upleg
August 4, 2023 12:26 pm
EURAUD is moving sideways today as the bears are trying to find their footing following the recent upleg that allowed this pair to test the 2023 high at 1.6785. The long-term trend remains bullish as evident by the August 26, 2022 upward sloping trendline with a muted series of higher highs and higher lows still favouring the bulls at this stage.
In the meantime, the current higher print in EURAUD is supported by a higher high recorded in the stochastic oscillator. This indicator is hovering at its overbought territory with the market closely monitoring its next move. Less impressively, the Average Directional Movement Index (ADX) is trading a tad above its 25-threshold and thus signaling a muted bullish trend. Interestingly, the RSI has been trading above its 50-midpoint over the past 40 days, confirming the current bullish pressure.
Should the bulls still feel thirsty, they would try to record a new 2023 high by breaking the 1.6785-1.6826 range that is populated by the October 20, 2022 and the April 26, 2023 highs respectively. If successful, the door would then be open to register a new 3-year high.
On the other hand, the bears would love to retake market control and push EURAUD below the August 24, 2015 high at 1.6583. The twin August 26, 2022 and June 15, 2023 upward sloping trendlines would then really test the bears’ determination, with the path becoming even more treacherous if they approach the 1.6194-1.6321 range.
To sum up, with the EURAUD bulls taking a breather following another strong upleg, the bears are anxiously trying to find a way to engineer a correction below 1.6583.
EURAUD is moving sideways today as the bears are trying to find their footing following the recent upleg that allowed this pair to test the 2023 high at 1.6785. The long-term trend remains bullish as evident by the August 26, 2022 upward sloping trendline with a muted series of higher highs and higher lows still favouring the bulls at this stage.
In the meantime, the current higher print in EURAUD is supported by a higher high recorded in the stochastic oscillator. This indicator is hovering at its overbought territory with the market closely monitoring its next move. Less impressively, the Average Directional Movement Index (ADX) is trading a tad above its 25-threshold and thus signaling a muted bullish trend. Interestingly, the RSI has been trading above its 50-midpoint over the past 40 days, confirming the current bullish pressure.
Should the bulls still feel thirsty, they would try to record a new 2023 high by breaking the 1.6785-1.6826 range that is populated by the October 20, 2022 and the April 26, 2023 highs respectively. If successful, the door would then be open to register a new 3-year high.
On the other hand, the bears would love to retake market control and push EURAUD below the August 24, 2015 high at 1.6583. The twin August 26, 2022 and June 15, 2023 upward sloping trendlines would then really test the bears’ determination, with the path becoming even more treacherous if they approach the 1.6194-1.6321 range.
To sum up, with the EURAUD bulls taking a breather following another strong upleg, the bears are anxiously trying to find a way to engineer a correction below 1.6583.
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