EUR/AUD Moves Up For the 2nd Day In A Row; Breaks Above 20, 50, 100 and 200 Day Averages

EUR/AUD Price Recap

EUR/AUD is up 124 pips (0.77%) since yesterday (with its current price near 1.63016), marking the 2nd 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 46.02% from the day prior, and up 15.83% from the same day the week before. Relative to other instruments in the Forex asset class, EUR/AUD ranked 3rd yesterday in terms of percentage price change. The price chart of EUR/AUD below illustrates.

EUR/AUD Technical Analysis

Moving average crossovers are always interesting, so let’s start there: EUR/AUD crossed above its 20, 50, 100 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 16.6 pips away. It should be noted, though, the 100 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. For additional context, note that price has gone down 7 out of the past 14 days.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on EURAUD, with 19 buy signals on our radar and 17 sell signals. This imputes a buy/sell ratio of 1.12, which is neutral. As for the rationale, technical traders seem to be citing the appearance of relative strength index and triangle technical patterns. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

Now price is resisting against the descending trend line and showing some bullish exhaustion….However, we could be in the midst of a potential trend reversal with the bullish divergences on 4hr and above which is why I am only targeting back towards the bottom of this triangle….If we get a breakout out of this triangle to the upside, I will close out and flip back to long.