EUR/AUD Breaks Below An Upside Support Line
JFD Team | Sep 02, 2021 07:19AM ET
EUR/AUD has been in a downside trajectory since Aug. 20, marked by a downside resistance line, while today, the rate broke below the upside support line drawn from the low of July 6. In our view, that break increases the chances for more declines in this exchange rate, but in order to get more confident on that front, we would like to see a clear dip below they round figure of 1.6000.
Such a dip below that psychological figure could invite more bears into the game, who, in their turn, may drive the action towards the low of Aug. 11, near 1.5903, or the low of July 16, at 1.5875. If they are not willing to stop there, then a break lower could see scope for extensions towards the low of July 14, at 1.5775.
Shifting attention to our short-term oscillators, we see that the RSI turned down again, near its 30 line, while the MACD continues to run below both its zero and trigger lines. Both indicators detect negative momentum and support the notion for further declines in this pair.
Now, the outlook could turn back to a positive one, if wee see a clear and strong rebound back above 1.6195. Such a move would confirm the rate’s return above both the aforementioned diagonal lines and would also confirm a forthcoming higher high on the 4-hour chart. The bulls may then get encouraged to push the action towards the peak of Aug. 27, at 1.6265, the break of which could extend the advance towards the 1.6335 area, marked by the inside swing low of Aug. 20. Another break, above that line could carry extensions towards the 1.6437 level, defined as a resistance by the high of Aug. 20.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.