EUR/AUD took a hit last week but is now holding the line.
Could this be the start of a bigger move?
Let’s break down what the 4-hour chart is telling us:
EUR/AUD 4-hour Forex Chart by TradingView
Like the other majors, the euro gave way to the Aussie last week after the RBA surprised markets by keeping rates unchanged.
This week, all eyes are on U.S.-EU trade talks, which could breathe life back into EUR demand. At the same time, tariff headlines and upcoming data from China might spook AUD bulls and put a cap on further gains.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your fundie homework on the Euro and the Australian dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
EUR/AUD has been trending higher since mid-May, but the rally hit a ceiling at 1.8100 before slipping all the way down to the 1.7750 zone.
This area is no random level as it lines up with the 200 SMA, a previous support, and the bottom of the ascending channel on the 4-hour chart.
If buyers step in and momentum picks up, we could see a bounce toward R1 Pivot Point near 1.8000 or even a retest of the 1.8100 highs.
But if the pair breaks below 1.7700, the next stops could be around 1.7600 near the S1 Pivot Point level or the 1.7500 psychological handle.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
