A junior descending channel pattern guided the single European currency against the Australian Dollar during the past week. The currency pair tested the upper boundary of the channel pattern at 1.6024 during Friday’s trading session.
The exchange rate was trading near the bottom border of a medium-term ascending channel pattern at 1.5866 during the morning hours of Monday's trading session and could be set for a breakout.
If this breakout occurs, the EUR/AUD currency exchange rate will edge lower towards a support level at 1.5756.
However, if the medium-term ascending channel holds, the pair will likely aim for a swing high of 1.6047 during the following trading sessions.
The exchange rate was trading near the bottom border of a medium-term ascending channel pattern at 1.5866 during the morning hours of Monday's trading session and could be set for a breakout.
If this breakout occurs, the EUR/AUD currency exchange rate will edge lower towards a support level at 1.5756.
However, if the medium-term ascending channel holds, the pair will likely aim for a swing high of 1.6047 during the following trading sessions.
Comment:
The common European currency depreciated about 1.14% against the Australian Dollar during the last week. However, the currency pair revealed a new junior ascending channel pattern during this period.
The exchange rate was stranded between SMAs during the first part of Monday’s trading session. The 50-hour simple moving average was providing resistance for the rate at 1.5990, while the 100– and 200– hour SMAs was providing support at 1.5935.
Technical indicators suggest that the junior ascending channel pattern is likely to hold during the following trading sessions.
The exchange rate was stranded between SMAs during the first part of Monday’s trading session. The 50-hour simple moving average was providing resistance for the rate at 1.5990, while the 100– and 200– hour SMAs was providing support at 1.5935.
Technical indicators suggest that the junior ascending channel pattern is likely to hold during the following trading sessions.
Comment:
The single European currency maintained its medium-term ascending channel pattern during the past week. The currency pair appreciated about 154 base points during last week’s trading sessions.
The exchange rate re-tested the bottom border of the medium-term ascending channel pattern during the Asian session on Monday.
If the support level formed by the lower boundary of the channel pattern at 1.5925 holds, the currency exchange rate will aim at a swing high of 1.6143 during the following trading sessions.
However, if the pair passes the support line as mentioned earlier, the next target for bearish traders will be at 1.5821.
The exchange rate re-tested the bottom border of the medium-term ascending channel pattern during the Asian session on Monday.
If the support level formed by the lower boundary of the channel pattern at 1.5925 holds, the currency exchange rate will aim at a swing high of 1.6143 during the following trading sessions.
However, if the pair passes the support line as mentioned earlier, the next target for bearish traders will be at 1.5821.
Comment:
The Eurozone single currency depreciated about 1.13% in value against the Australian Dollar during last week’s trading session. The currency pair tested the lower boundary of an ascending channel pattern at 1.5895 during Friday’s session.
The exchange rate was stranded between moving averages during the morning hours of Monday’s trading session. The 50– and 100-hour SMAs was providing resistance for the pair, while the 200-hour simple moving average was providing support.
Given that the currency exchange rate has bounced off its bottom border of the channel pattern, bullish traders could push the pair towards 1.6078 in the short-term.
The exchange rate was stranded between moving averages during the morning hours of Monday’s trading session. The 50– and 100-hour SMAs was providing resistance for the pair, while the 200-hour simple moving average was providing support.
Given that the currency exchange rate has bounced off its bottom border of the channel pattern, bullish traders could push the pair towards 1.6078 in the short-term.
As for the near future, it is likely that the currency exchange rate makes a brief retracement towards a support cluster formed by the 50-, 100– and 200-hour SMAs at 1.5915.
If the support cluster holds, a potential upside reversal could be expected during the following trading sessions.