Trending
Forex
  • EURUSD
    1.09 0.55%
  • GBPUSD
    1.24 0.71%
  • AUDUSD
    0.68 1.51%
  • USDJPY
    132.42 -0.28%
  • NZDUSD
    0.63 0.67%
  • USDCHF
    0.91 -0.26%
  • USDCAD
    1.34 -0.6%
  • EURJPY
    144.37 0.26%
  • EURGBP
    0.88 -0.16%

EUR/AUD continues upward – more space to rise ahead?

EUR/AUD broke a several-week-long consolidation, which opened doors for a new upward move of around 500 pips.

The decisions of central banks to lift interest rates brought some serious volatility to financial markets. This probably helped the currency pair EUR/AUD to break from its weeks-old consolidation, and continue in its already-begun uptrend.

EUR/AUD weekly timeframe analysis

A few weeks ago, the currency pair broke out above a level 1.527 and did an exemplary pullback. EUR/AUD clearly rejected the moving average (EMA200), using it just as a temporary stop. OsMA indicator also pointed out that the market may be ready to jump higher. 

Related article: Platinum on crossroads – heading above or below $1,000?

Now that the breakout is confirmed with a massive engulfing pattern, we may see the uptrend continue for a few weeks. The next stop is probably around 1.62, which is the closest resistance. However, it could eventually rise to even 1.643, or even higher. 

euraud

EUR/AUD weekly chart, author’s analysis, source: tradingview.com

EUR/AUD daily timeframe analysis

Now it’s important to have a good entry as we can assume which direction it will go with strong probability. Next week, traders could use the opportunity to jump into a buy position when the currency pair retraces back down to support, where there is also a trend line. 

Thus, the best entry in a long trade would be at approximately 1.570. It may take a few days for EUR/AUD to get there, but the traders need to be patient. Inconsiderate entries could easily lead to losses. 

euraud

EUR/AUD daily chart, author’s analysis, source: tradingview.com

Final thoughts

As the euro gains momentum against all other currencies, the probability of EUR/AUD rising is very high. For example, EUR/USD jumped from just 0.955 to 1.07 in 10 weeks. Fighting against the trend now will not be a good idea.

Wait for a corrective move downward and use it as an opportunity to jump into a long position if you agree the uptrend is likely to continue. There will surely be a chance for a good entry on the 4H or 1H timeframe in a few days. But most importantly, don’t forget to use stoploss. Managing risk is a number one priority.

I got into financial markets by accident in 2012 and started with Forex trading. Later in 2017, I started investing in stocks in cryptocurrencies and began writing articles profess...

Comments

Post has no comment yet.

Want add your comment? Sign up or Sign in