23 Jul 2013
EUR/AUD floundering at 1.4238 after bearish reversal Monday
FXstreet.com (Barcelona) - Monday brought traders a textbook “bearish engulfing” candle on the chart of EUR/AUD and Tuesday’s trading action has done nothing to counteract that bearish technical development.
EUR/AUD reversed hard to the downside Monday after peaking at 1.4344
Despite what could have been interpreted as bullish news for the euro in the form of crisis-averting comments from the President of Portugal this weekend, the EUR/AUD has remained under selling pressure on Tuesday after reversing to the downside and closing lower for the session Monday.
Technical outlook for EUR/AUD
Technicians have the EUR/AUD working its way down to “correction support” at 1.4001 over the next several sessions. Once down there, though, many analysts have the EUR/AUD regaining a bullish technical posture and heading higher. Short-term support for EUR/AUD comes in at 1.4165 – the 7/17 low. That level is followed by the Fibonacci projection down at the afore-mentioned 1.4001. Resistance for EUR/AUD comes into play at Monday’s high of 1.4344 and is backed up by additional resistance at 52-week high from 7/12 at 1.4477.
EUR/AUD reversed hard to the downside Monday after peaking at 1.4344
Despite what could have been interpreted as bullish news for the euro in the form of crisis-averting comments from the President of Portugal this weekend, the EUR/AUD has remained under selling pressure on Tuesday after reversing to the downside and closing lower for the session Monday.
Technical outlook for EUR/AUD
Technicians have the EUR/AUD working its way down to “correction support” at 1.4001 over the next several sessions. Once down there, though, many analysts have the EUR/AUD regaining a bullish technical posture and heading higher. Short-term support for EUR/AUD comes in at 1.4165 – the 7/17 low. That level is followed by the Fibonacci projection down at the afore-mentioned 1.4001. Resistance for EUR/AUD comes into play at Monday’s high of 1.4344 and is backed up by additional resistance at 52-week high from 7/12 at 1.4477.