EUR/AUD Down 81 Pips, Breaks Below 50 and 200 Averages; in an Uptrend Over Past 14 Days

EUR/AUD Price Recap

EUR/AUD enters today at 1.61111 in US dollars, down 81 pips (0.5%) from the day prior. The price move occurred on stronger volume, as measured by the number of tick price changes; specifically, yesterday’s volume was up 4.95% from the day prior, and up 7.14% from the same day the week before. Out of the 40 instruments in the Forex asset class, EUR/AUD ended up ranking 38th for the day in terms of day-over-day price change. Below is a price chart of EUR/AUD.

EUR/AUD Technical Analysis

Notably, EUR/AUD crossed below its 50 and 200 day moving averages yesterday. 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 10.1 pips away. It should be noted, though, the 50 day simple moving average turned downwards, which may be a bearish sign. Volatility for EUR/AUD has exploded over the past two weeks relative to the past 30 days, which technical traders will want to note. Trend traders will want to observe that the strongest trend appears on the 14 day horizon; over that time period, price has been moving up. It should be noted, though, that a trend in the opposite direction, going down, exists on the 90 day timeframe. Or to simplify this another way, note that out of the past 10 days EUR/AUD’s price has gone up 6 them.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on EURAUD, with 1 buy signals on our radar and 13 sell signals. This imputes a buy/sell ratio of 0.08, which is quite bearish. As for the rationale, technical traders seem to be citing the appearance of channel, relative strength index, stochastic and trendline technical patterns. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

This could signal further bearish momentum and we look at the TP levels to gauge where price could bounce off from….Watch for bearish price action before any SHORT entry….Feel free to discuss and comment, Cheers!