EURAUD and most other Australian crosses have been on a weakening path, reflective of a generally firm Aussie dollar after Australian Q1 GDP came in with 0.3% q/q growth, relieving some market fears of there being a negative out-turn following weak capex data. EURAUD presented a down movement since Friday May 2, while today by observing the 4-hour chart, the pair drifted lower to 1.4840.
More interesting is the fact that in a daily time-frame, the pair broke today the 20 Day moving average, despite the general upwards movement in a weekly and monthly basis. This downtrend has been observed for 4 consecutive daily sessions, below the latest down fractal. Meanwhile it is important to mention that Parabolic SAR turned negative yesterday, after being continuously positive since mid-May. Additionally, RSI is at 48 looking that it is likely to reduce further.
Therefore, a SHORT position was taken at 1.4843, since weakness is likely to be continue. Target 1 was set at the lower Bollinger bands, which is at 1.4750. Target 2 was set at 1.4680, which is also the 50-Day EMA. Support at 1.5030.
Click here to access the HotForex Economic calendar.
Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE! The next webinar will start in:
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.