The Eurozone single currency has depreciated about 1.54% against the Australian Dollar since January 8. The exchange rate was pressured south by the 50-hour simple moving average, which was providing resistance for the pair at 1.6200.
The EUR/AUD currency pair breached the lower boundary of an ascending channel at 1.5902 during the Asian session on Tuesday.
Given that a breakout had occurred, it is likely that the currency exchange rate continues its southern journey during the following trading sessions.
However, the 200-hour SMA at 1.5902 could provide support for the price within this session.
The EUR/AUD currency pair breached the lower boundary of an ascending channel at 1.5902 during the Asian session on Tuesday.
Given that a breakout had occurred, it is likely that the currency exchange rate continues its southern journey during the following trading sessions.
However, the 200-hour SMA at 1.5902 could provide support for the price within this session.
Note
The EUR/AUD currency pair has revealed a new junior descending channel pattern. The pair re-tested the upper boundary of the descending channel on January 24.
The exchange rate was trading near the bottom border of an ascending channel at 1.5857 during the morning hours of Monday’s trading session.
If the common European currency breaks the ascending channel pattern, the next target for bearish traders would be near the weekly S2 at 1.5731.
However, if the support level formed by the lower boundary of the ascending channel pattern holds, the currency exchange rate could aim for a strong resistance level at 1.5965 during the following trading sessions.
Note
The Eurozone single currency has depreciated about 1.76% against the Australian Dollar during the last one week. The decline started when the currency pair tested the 200-hour simple moving average at 1.5972.
As for the near future, it is likely that the exchange rate will continue its journey south. The potential downside target during the following trading session will be near the lower boundary of an ascending channel pattern at 1.5419.
However, technical indicators flash strong buy signals on the weekly time-frame chart. If this signal is accurate, a possible upside reversal from a support level formed by the weekly S1 at 1.5687 could be expected.
Note
The single European currency has appreciated about 2.06% against the Australian Dollar since February 4. This rally was stopped by a resistance level formed by the weekly PP at 1.6047.
The exchange rate was stranded between SMAs during the morning hours of Monday’s trading session. The 200-hour simple moving average was providing resistance for the pair at 1.5996, while the 50– and 100-hour SMAs was providing support.
Technical indicators flash bullish signals on the 4(H) time-frame. Therefore, it is likely that the currency exchange rate will surpass the 200-hour SMA during the following trading sessions.
Note
The common European currency has depreciated about 1.20% in values against the Australian Dollar since February 11. The currency pair tested the lower boundary of a dominant ascending channel at 1.5819 during Friday’s trading session.
Given that the exchange rate is located near the bottom border of the dominant ascending channel, a breakout is likely to occur within this session.
If this breakout occurs, the next target for the currency exchange rate will be at a swing low of 1.5725.
On the other hand, if the support level formed by the dominant channel holds, a surge towards a resistance cluster at 1.5952 could be expected during this week’s trading sessions.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.