EUR/AUD Down 28 Pips in Last 4 Hours, 3 Day Down Streak Broken; Price Base in Formation Over Past 14 and 90 Days

EUR/AUD 4 Hour Price Update

Updated May 21, 2020 05:10 PM GMT (01:10 PM EST)

After 4 up four-hour candles, EUR/AUD snaps its streak, falling 28 pips (-0.17%) over the past four-hour candle to close at an exchange rate of 1.6694. Out of the 37 instruments in the Forex asset class, EUR/AUD ended up ranking 24th for the four-hour candle in terms of price change.

EUR/AUD End of Day Recap

Updated 00:30 GMT (04:30 EST)

A moment of silence, please, for the end of EUR/AUD’s 3 day down streak; price ended the previous day up 27 pips (0.16%) to finish the day at a rate of 1.66627. Compared to its peers in the Forex, EUR/AUD gave its buyers a return that ranked 2nd in terms of percentage change since the previous day. Below is a price chart of EUR/AUD.

EUR/AUD Technical Analysis

Notably, the current price of EUR/AUD is sitting close to its 20, 100 and 200 day moving averages; moving average crosses often indicate a change in momentum, so this may be worth keeping an eye on. As for the alignment of the moving averages, well, it’s a bit mixed up; the 20, 50, 100, and 200 do not progress from largest to smallest, or vice versa. The closest is the 200 day average, which is 48.5 pips away. Volatility for EUR/AUD has been contracting over the past two weeks relative to volatility over the past month. Whether volatility reverts will be something to watch. Trend traders will want to observe that the strongest trend appears on the 30 day horizon; over that time period, price has been moving down. Also of note is that on the 14 and 90 day bases price appears to be forming a base — which could the stage for it being a support/resistance level going forward. For additional context, note that price has gone up 6 out of the past 10 days. Oh, and one last thing: if you trade off of candlesticks, note that we’re seeing pin bar pattern appearing here.

The View From Around the Web

Of note is that traders in aggregate have opinions on EURAUD, with 14 buy signals on our radar and 14 sell signals. This imputes a buy/sell ratio of 1, which is neutral. As for the rationale, technical traders seem to be citing the appearance of a fibonacci technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

EURAUD quick short after a rising wedge on the M15 timeframe.