Hello, fellows, for our today’s article I have decided to share some insight not on a major pair but the heavy volatile EUR/AUD cross. The pair provides strong trading opportunity and probably one of the best defined big-time frame ranges around the FX.
From a technical point of view, the price is locked between the resistance at 1.5870 and the support at 1.3680. Moreover, there are strong patterns confirming that the bears are winning the fight and after hitting the upper range boundary a possible target in the next months will be the lower one.
Around the 1.5800/5900 levels, we spot very rapid depreciation of the single currency showed in a bearish price action monthly candle. Since the beginning of March, only for three days, we spot solid downfall confirming the downtrend. The price may find some support nearby the 1.4300 level but overall the target is 1.3670/13700 and with a stop loss above 1.5800 this opportunity provides 1 to 1.5 odds backed up with a solid technical signal on a big-time frame.
As we expected the dollar continue to appreciate against other major currencies and for the beginning of the trading week we decided to provide a trading insight on one of the commodity pairs – the AUD/USD cross. The Australian dollar has been under a heavy fundamental pressure due to the low oil prices and this could be clearly seen on the daily chart.
Moreover, from a technical point of view, we spot a huge bearish engulfing pattern with several other technical structures that suggest the bear’s dominance. After the pair has confirmed a broken triangle pattern, the prices have moved in a corrective sideways wedge and we expect given the huge bearish candle that occurred last Friday we expect the down movement to continue.
In a mid-term perspective, my forecast is that the prices will head towards the prior lows at 0.6830 as the long-term bears will try to push for another low. The scenario could only change if we see a bullish move that extends above 0.7260. However, for now, there aren’t any technical signs that the bulls may trigger a rally.