Monday, December 9, 2019
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Technical Analysis – EUR/AUD strongly positive

EUR/AUD tries to jump above the ascending channel; strongly positive.

EUR/AUD is extending its gains over the last couple of weeks, recording a fresh more than five-month high around 1.6350. Thus, the short-term picture thus seems to be strongly positive, as the RSI is hovering in the overbought territory and the MACD is strengthening its momentum above the trigger line.

A break above the ascending channel could increase speculation for more upside pressure towards the 1.6590 resistance level. If the bulls pierce the latter too, attention would turn to 1.6662.

A potential pullback in the market may meet initial support near 1.6260. Another downside break would open the way for the 20-day simple moving average (SMA) currently at 1.6180 and near the blue Kijun-Sen line. Next, the price could reach the 40-day SMA around 1.6090 before resting near the 1.6050 support level.

Summarising, the medium-term picture is bullish as the pair has been trading higher over the last six months.


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Disclaimer:
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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