AUDEUR finds support at 20-day moving average
Australian Dollar/Euro (AUDEUR) Technical Analysis Report for Apr 16, 2019 | by Techniquant Editorial Team
AUDEUR ended Tuesday at 0.6361 gaining 16 pips (0.25%). Trading up to 31 pips lower after the open, the forex pair managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Monday's high at 0.6354, the market confirmed its breakout through the prior session high after trading up to 7 pips above it intraday.
Daily Candlestick Chart (AUDEUR as at Apr 16, 2019):
Tuesday's trading range has been 46 pips (0.72%), that's above the last trading month's daily average range of 38 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for AUDEUR. Prices continued to consolidate within a tight trading range between 0.6308 and 0.6364 where it has been caught now for the whole last trading week.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. The last time this happened on April 10th, AUDEUR actually lost -0.49% on the following trading day. Though trading as low as 0.6315 during the day, AUD/EUR has decisively rejected those price levels and formed a bullish Pin Bar closing 46 pips above today's low. Additionally, one bullish candlestick pattern matches today's price action, the Bullish Closing Marubozu.
After trading as low as 0.6315 during the day, the pair found support at the 20-day moving average at 0.6318. Prices are trading close to the key technical resistance level at 0.6363 (R1).
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might accelerate should prices move above the nearby swing high at 0.6364 where further buy stops could get activated.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Pin Bar" stand out. Its common bullish interpretation has been confirmed for AUD/EUR. Out of 12 times, AUDEUR closed higher 66.67% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 58.33% with an average market move of 0.70%.