EUR Trading Outlook
The main level to watch now in AUD/USD will be previous highs at .9520 (see chart) but with the 200-DMA forming a very strong cap, I expect the rally-sellers to win out in the short-term and that we do indeed get a test of this support level in coming sessions.
The 200-DMA near .9750 is emerging as the key technical level (see chart) and a clean break above there will usher in a swift test of parity. Support levels should be quite strong now near .9525 where a trend-line converges on previous highs. Short-term charts are unwinding some overbought properties and favour further losses.
The 50% Fibo retracement from 1.0580/.8850 comes in near .9715 and the market is respecting this level and it’s attracting some profit takers (see chart). The 200-DMA sits near .9750 and this will also provide resistance. Short-term charts are exhibiting overbought tendencies and we may see a period of consolidation whilst they unwind. Support levels start now at .9630.
The 50% Fibo retracement from 1.0580/.8850 comes in near .9715 and that continues to cap (see chart). The short term charts show prices topping out at present around .9680 and a break below .9630 could form a topping pattern of sorts, but again best to wait for confirmation.
The obvious technical target is the 50% retracement level at .9710 (see chart). The longer term charts suggest that a test of 1.000/1.0120 is likely so buying dips is the clear bias. Support levels start firstly at .9640 getting stronger at prior highs near .9525.
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