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EURAUD Technicals: 12/23

by on December 23, 2013 5:54 am GMT
 

The EURAUD seen a lot of selling pressure  after peaking at 1.5574 during the AUDUSD move to new yearly lows of .8820. However, the pair began to consolidate and trade lower after breaking the consolidation range. The Australian seen a bit of buying which will help during the near-term. New lows are often met with buying because the Australian dollar is highly sought after with 34 central banks buying the currency for their foreign-exchange reserves.

The trend in the EURUSD is beginning to show signs of weakness after the Federal Reserve decided to taper. The EURAUD on the 4H chart is showing support at 1.5300, while intraday upside is open at 1.5365-75. A break below current price action support would leave the pair vulnerable to trend lower to the 72 EMA, potentially 1.5200 even.

4H Chart of EURAUD

4H Chart of EURAUD

The chart show the inflection point just below 1.56 and sold off. Daily support corresponds with the 4H secondary support level of 1.52, while lower support can be found at 1.50. RSI came from overextended levels but is stabilizing and beginning to tick up. The ADX momentum gauge is flattening out. Price action resistance also aligns with the 4H chart within the 1.5365-75 level.

1D Chart of EURAUD

1D Chart of EURAUD

 

Current levels on a historical basis…

1D Chart of EURAUD

1D Chart of EURAUD