7 Jun 2013
EUR/AUD posts highest daily close since Oct 2011
The EUR/AUD continued is impressive move higher today, climbing another 125 pips and closing at 1.3899.
The FXstreet.com Trend Index remains in a slightly bullish set up on the daily chart, while the ob/os index reads overbought. Price remains above both short term moving averages on the daily chart, another development which could help keep the bulls in control as we near end of week. However, it should be noted that although the RSI (14) is still in the bullish zone between 40 and 80, it is showing a short term bearish divergences with price which is a sign momentum might be failing to keep up. Often times, this is just a sign consolidation may be due or perhaps a small correction, but the overall trend remains higher.
First support sits at 1.3812 (the 9dma on 1 hour chart), followed by 1.3741 (the 50dma on 1 hour chart). Initial resistance sits at 1.3900 (high of previous day) followed by 1.3940 (weekly resistance). Only a break and close below 1.3585 would help turn the short term trend to bearish.
The FXstreet.com Trend Index remains in a slightly bullish set up on the daily chart, while the ob/os index reads overbought. Price remains above both short term moving averages on the daily chart, another development which could help keep the bulls in control as we near end of week. However, it should be noted that although the RSI (14) is still in the bullish zone between 40 and 80, it is showing a short term bearish divergences with price which is a sign momentum might be failing to keep up. Often times, this is just a sign consolidation may be due or perhaps a small correction, but the overall trend remains higher.
First support sits at 1.3812 (the 9dma on 1 hour chart), followed by 1.3741 (the 50dma on 1 hour chart). Initial resistance sits at 1.3900 (high of previous day) followed by 1.3940 (weekly resistance). Only a break and close below 1.3585 would help turn the short term trend to bearish.