EUR/AUD Builds Downwards Momentum

Hello traders!

Welcome to PrimeXBT’s latest trade idea, focusing on EURAUD’s price action.

Combine China’s numbers with stronger Markit Services and Composite PMIs from many European countries and with the EU as a whole, and we get a strong case for a move higher in EURAUD.

EUR/AUD bears will look to short near 1.625 with stops above the key resistance level. Bulls will look for a retest of horizontal support near 1.6093 to buy the pair. Support exists below at prior lows of 1.598.

In the weekly chart analysis on the left, the price action combined with the Relative Strength Index has formed a bearish divergence, which often indicates that a trend reversal is forming from bullish to bearish, and a downtrend could soon follow with a target of the support line to around the 0.382 Fibonacci level.

Looking ahead, if bulls continue to push EUR/AUD's price above the key resistance level, other resistance levels are located at 1.67985. On the other hand, if the bears push it beneath the key support level, other support levels are found at 1.55880.


Key Resistance Level: 0.6325
Key Support Level: 1.598
Local Support Level: 1.6093

Bulls Target: 1.67985
Bears Target: 1.55880


PrimeXBT only offers you the most valuable analysis each day.

Keep an eye out for more PrimeXBT trading signals for other assets.