Monday, September 23, 2019
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Technical Analysis – EUR/AUD runs towards 23.6% Fibo

EUR/AUD runs towards 23.6% Fibo; outlook seems bullish.

EUR/AUD finally reversed to the upside last Thursday after printing higher lows and higher highs in the preceding seven months to reach a five-month high of 1.6445 on June 18. Momentum indicators on the daily chart though are currently supporting that positive momentum is likely to strengthen in the short-term. Specifically, the RSI is picking up speed near 50 and the MACD is trying to surpass the zero line.

Further advances could then target the immediate area around the 23.6% Fibonacci retracement level of the bullish rally from 1.5340 to 1.6445 around 1.6185. Marginally above this level, the 40- and then the 20-simple moving averages at 1.6200 and 1.6237 could come in focus before the market challenges the 1.6260 resistance. Such a move could also post a clear step higher, hitting the five-month high of 1.6445.

On the other hand, a decline could meet the 38.2% Fibo of 1.6025 and the 1.6020 support again. Below that, the 1.5900 psychological level is standing near the uptrend line, which encapsulates the 50.0% Fibonacci. If there is a successful drop below this handle, this would shift the bullish outlook to neutral, meeting the 61.8% Fibo of 1.5765.

In brief, EUR/AUD has been advancing over the last days and investors should be waiting for a jump above the short-term moving averages in the daily timeframe.


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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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