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Technical Analysis – EUR/AUD bullish bias eases

EUR/AUD 06/07/18 | EconAlerts

EUR/AUD bullish bias eases, trades above moving averages.

EUR/AUD has posted considerable gains after hitting a five-month low of 1.5272 on June 5. On Tuesday, the pair touched a two-month high of 1.5886.

The Tenkan-sen is above the Kijun-Sen, pointing to a positive short-term bias. However, the fact that the Kijun-sen has flatlined is an indication of easing positive momentum in the near-term.

Further upside movement could meet resistance around the 61.8% Fibonacci retracement level of the March 28 to June 5 down-leg at 1.5839. Stronger gains would turn the attention to the area around the two-month high of 1.5886 from earlier in the week which also encapsulates the 1.59 round figure.

On the downside, support may come around the current level of the 100-day moving average at 1.5778. The zone around this point includes the Tenkan-Sen (1.5791), as well as the Ichimoku cloud top (1.5752). Further below, the 50% Fibonacci mark at 1.5730 would be eyed next.

Regarding the medium-term picture, the price action has defied the negative signal given by the bearish cross recorded in early to mid-June when the 50-day MA moved below the 100-day one. Specifically, since Thursday (yesterday), trading activity has been taking place above both the 50- and 100-day MA lines, as well as above the Ichimoku cloud, supporting the existence of a bullish tilt in the medium-term. Things are still “fragile” though, with a fall below the 100-day MA and back into the cloud setting the scene for a neutral outlook.

Overall, the short-term bias remains bullish though it seems to have lost part of its steam, while the medium-term outlook is positive, albeit only marginally so.

EUR/AUD 06/07/18 | EconAlerts



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This information is not considered as investment advice or investment recommendation but instead a marketing communication. This material has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.

source: XM

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