Remember that EUR/AUD range setup we spotted a few days ago? It played out pretty nicely.
Now it looks like the bulls might get another shot at the support zone!
Here’s the pair’s latest 4-hour chart:
EUR/AUD 4-hour Forex Chart by TradingView
Improved market risk sentiment, growing expectations for a Fed rate cut, and stronger gold prices have all helped keep the commodity-related Australian dollar demand afloat in the last trading sessions.
The euro has been steady as well, supported by hotter-than-expected German inflation, solid Italian industrial production, and consistent messaging from European Central Bank members that likely kept the euro from slipping further against the Aussie.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the Australian dollar and the euro, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
EUR/AUD, which ran into resistance at the 1.7850 mid-range line last week, looks ready to head back toward the 1.7600 psychological level that marks the bottom of its months-long range.
If we start seeing bullish candlesticks and steady momentum from that area, it could mean 1.7600 held once again and open the door for a move back toward 1.7900 or even the 1.8000 psychological level.
But if the bears finally get their break and EUR/AUD slips through its range and the S1 (1.7608) Pivot Point support, the pair could fall toward the 1.7500 zone or even the 1.7450 area of interest.
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.
