EUR/AUD Down 40 Pips in Last 4 Hours, Makes Big Move Relative to Two Week Trend; in a Downtrend Over Past 90 Days

EUR/AUD 4 Hour Price Update

Updated June 25, 2020 01:11 PM GMT (09:11 AM EST)

EUR/AUD is down 40 pips (0.24%) since the previous 4 hours (opening the current 4 hour candle near 1.6325), marking the 3rd candle in a row it has gone down. Relative to other instruments in the Forex asset class, EUR/AUD ranked 29th the previous 4 hours in terms of percentage price change.

EUR/AUD End of Day Recap

Updated 00:30 GMT (04:30 EST)

EUR/AUD is up 27 pips (0.17%) since the previous day (opening today near 1.64055), marking the 3rd day in a row an increase has occurred. Relative to other instruments in the Forex asset class, EUR/AUD ranked 6th the previous day in terms of percentage price change. The price chart of EUR/AUD below illustrates.

EUR/AUD Technical Analysis

The first thing we should note is that EUR/AUD is now close to its 20, 50 and 200 day averages, located at 1.6317, 1.6549 and 1.6638 respectively, and thus may be at a key juncture along those timeframes. 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 20 day average, which is 88.7 pips away. It should be noted, though, the 20 day simple moving average turned upwards, which may be a bullish sign. 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 90 day horizon; over that time period, price has been moving down. Also of note is that on a 14 day basis 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 down 7 out of the past 14 days. Also, candlestick traders! Note we see pin bar pattern appearing here as well.

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 22 sell signals. This imputes a buy/sell ratio of 0.64, which is bearish. As for the rationale, technical traders seem to be citing the appearance of a elliott wave technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

Very interesting pair to be watching, as it has been in a consolidation range for some time now….Price has now reached the top of the range once again, which also aligns with the long term descending trendline….Will be watching for a breakout on this pair to confirm the next direction.