EUR/AUD moves below decade high; strongly bullish in the long-term.
EUR/AUD retreated after it found strong resistance on the almost 10-year high of 1.6658, returning below the 1.6350 strong level. The downfall in the price action is confirmed by the technical indicators. The MACD continues to head downwards after creating a bearish cross with its trigger line, while the stochastic oscillator weakened to enter the oversold zone, with the latter supporting that a rebound could be around the corner. The positive cross between the 20- and 40-simple moving averages (SMA) hints that the market trend might remain on the upside in the short term.
If the price continues to stand above the 20-day SMA and the 1.5980 support, the focus will shift up to 1.6380, taken from the highs on October 11. Moving higher, the bulls might find resistance around the decade peak of 1.6658.
Below that line though, the price could retest 1.5945, the 23.6% Fibonacci of the up-leg from 1.3620 to 1.6658, before dropping lower towards the 1.5880 level. Steeper declines may challenge the 40-day SMA near 1.5800 at the time of writing.
Concluding and looking at the long-term timeframe, EUR/AUD has been strongly positive creating higher highs and higher lows since February 2017.
All trading involves risk. It is possible to lose all your capital
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.