EUR/AUD Heads Up For the 4th Day In A Row, in an Uptrend Over Past 14 Days; Social Sentiment Biased Towards Selling

EUR/AUD Price Recap

EUR/AUD is up 310 pips (1.73%) since yesterday (with its current price near 1.82543), marking the 4th day in a row an increase has occurred. The price move occurred on stronger volume, as measured by the number of tick price changes; specifically, yesterday’s volume was up 9.39% from the day prior, and up 235.19% from the same day the week before. Out of the 40 instruments in the Forex asset class, EUR/AUD ended up ranking 7th for the day in terms of day-over-day price change. The price chart of EUR/AUD below illustrates.

EUR/AUD Technical Analysis

Trend traders will want to observe that the strongest trend appears on the 30 day horizon; over that time period, price has been moving up. Or to simplify this another way, note that out of the past 10 days EUR/AUD’s price has gone up 6 them.

A final note on correlations: over the past 7 days, the currency pair bearing the strongest correlation to EUR/AUD has been AUD/CHF — not terribly surprising, given that AUD is in both currency pairs. On the flip side, in terms of pairs with the least correlation to EUR/AUD, AUD/CHF is the pair that holds that distinction for the past two weeks.

The View From Around the Web

Of note is that traders in aggregate have opinions on EURAUD, with 2 buy signals on our radar and 19 sell signals. This imputes a buy/sell ratio of 0.11, which is quite bearish. As for the rationale, technical traders seem to be citing the appearance of divergence and wedge technical patterns. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

Long time no see!…So looks like we have a rising wedge on 1h and 30 min TF:https://www.tradingview.com/x/5ODRQgdE/Price is close to top of the wedge, which is a good place to open sell, 1st tp is around 1,794Tp for longer and smaller trade is that open GAP @ 1,698….Good luck and trade safe!