AUDEUR pushes through key technical resistance level
Australian Dollar/Euro (AUDEUR) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
AUDEUR ended Thursday at 0.5497 gaining 21 pips (0.38%). Trading up to 92 pips lower after the open, the FX pair managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Monday, AUDEUR gained 1.45% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (AUDEUR as at Mar 26, 2020):
Thursday's trading range has been 134 pips (2.45%), that's slightly below the last trading month's daily average range of 157 pips. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for AUDEUR.
Buyers managed to take out the key technical resistance level at 0.5488 (now S1), which is likely to act as support going forward.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 0.5607 where further buy stops might get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Up Close near high of period" stand out. Its common bullish interpretation has been confirmed for AUD/EUR. Out of 578 times, AUDEUR closed higher 51.56% 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 two trading days, showing a win rate of 54.15% with an average market move of 0.01%.