EUR/AUD Tumbles Below The Lower End Of A Range
JFD Team | Dec 03, 2019 07:10AM ET
EUR/AUD tumbled on Tuesday, falling below 1.6210, the lower end of a range that had been containing most of the price action since November 14th. In our view, this has turned the short-term bias to the downside.
If the bears are strong enough to stay in the driver’s seat, we may see them challenging the 1.6140 zone soon, which is defined as a support, by the inside swing highs of November 12th and 13th. If they manage to overcome that obstacle, then we may experience extensions towards the 1.6070 area, marked by an intraday swing low formed on November 13th, and also slightly above the same day’s low. If that level is not able to halt the slide either, then its break may allow extensions towards the psychological zone of 1.6000.
Looking at our short-term oscillators, we see that the RSI lies below 50 and points south, while the MACD stands below both its zero and trigger lines, pointing down as well. Both indicators detect downside speed, which supports the case for some further declines in this exchange rate.
On the upside, we would like to see a clear break back above 1.6315, the upper end of the aforementioned range, before we start examining whether the bulls have gained the upper hand. Such a move may initially pave the way towards the 1.6350 barrier, which if broken, may set the stage for the advance to continue towards the 1.6400 zone, marked by the high of October 17th.
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.