Or to simplify this another way, note that out of the past 10 days eur/aud’s price has gone down 6 them.
The closest is the 20 day average, which is 33.8 pips away.
For additional context, note that price has gone down 6 out of the past 10 days.
The closest is the 20 day average, which is 17.4 pips away.
As for the rationale, technical traders seem to be citing the appearance of a fibonacci technical pattern.
The clearest trend exists on the 30 day timeframe, which shows price moving down over that time.
Trend traders will want to observe that the strongest trend appears on the 30 day horizon; over that time period, price has been moving down.
Relative to other instruments in the forex asset class, eur/aud ranked 21st yesterday in terms of percentage price change.
The closest is the 20 day average, which is 67.6 pips away.
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.