EUR/AUD Down 37 Pips On 4 Hour Chart, Nears 200 Day Moving Average; Pin Bar Pattern Appearing on Chart

EUR/AUD 4 Hour Price Update

Updated May 25, 2020 05:08 PM GMT (01:08 PM EST)

EUR/AUD, which opened the current 4 hour candle priced near 1.664, is down 37 pips 0.22% since the last 4 hour candle, marking a reversal from the candle prior — and the end of a 3 four-hour candle positive run. Compared to its peers in the Forex, EUR/AUD gave its buyers a return that ranked 34th in terms of percentage change since the last 4 hour candle.

EUR/AUD End of Day Recap

Updated 00:30 GMT (04:30 EST)

EUR/AUD is up 5 pips (0.03%) since the day prior (opening today near 1.66785), marking the 3rd day in a row an increase has occurred. Out of the 40 instruments in the Forex asset class, EUR/AUD ended up ranking 15th for the day in terms of price change. Let’s take a look at price chart of EUR/AUD.

EUR/AUD Technical Analysis

Coming into today EUR/AUD is now close to its 20, 100 and 200 day averages, located at 1.677, 1.7061 and 1.6618 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 200 day average, which is 60.5 pips away. It should be noted, though, the 20 day simple moving average turned downwards, which may be a bearish 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. The clearest trend exists on the 30 day timeframe, which shows price moving down over that time. Also of note is that on a 90 day basis price appears to be forming a base — which could the stage for it being a support/resistance level going forward. Or to simplify this another way, note that out of the past 14 days EUR/AUD’s price has gone up 8 them. 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 12 buy signals on our radar and 6 sell signals. This imputes a buy/sell ratio of 2, which is bullish. As for the rationale, technical traders seem to be citing the appearance of a wedge technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

Falling Wedge with multiple rejections at a daily support zone. Definitely a pair ill be keeping an eye on early in the week!