EUR/AUD Up 65 Pips; Pin Bar Pattern Appearing on Chart

EUR/AUD Price Recap

EUR/AUD is up 65 pips (0.4%) since yesterday (with its current price near 1.6432), marking the 4th day in a row it has gone up. The price move occurred on stronger volume, as measured by the number of tick price changes; specifically, yesterday’s volume was up 28.7% from the day prior, and up 26.02% from the same day the week before. Out of the 40 instruments in the Forex asset class, EUR/AUD ended up ranking 9th for the day in terms of day-over-day price change. The price chart of EUR/AUD below illustrates.

EUR/AUD Technical Analysis

The first thing we should note is that the current price of EUR/AUD is sitting close to its 20, 50, 100 and 200 day moving averages; moving average crosses often indicate a change in momentum, so this may be worth keeping an eye on. 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 129.4 pips away. Volatility for EUR/AUD has exploded over the past two weeks relative to the past 30 days, which technical traders will want to note. Or to simplify this another way, note that out of the past 30 days EUR/AUD’s price has gone up 17 them. And for candlestick traders, a special treat: there is a pin bar pattern showing up on the charts as well. Rejoice!

The View From Around the Web

We’re seeing some traders come out with interesting conviction on EURAUD, with 8 buy signals on our radar and 20 sell signals. This imputes a buy/sell ratio of 0.4, which is bearish. As for the rationale, technical traders seem to be citing the appearance of a channel technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

https://www.tradingview.com/x/Qe35zrXs/EURAUD has reached a strong structure resistance….based on the rejection and rsi divergence the chances that the pair will drop are quite high….I am waiting for a bearish breakout of minor support on 1H as a trigger to short the pair.