AUDEUR pushes through key technical resistance level
Australian Dollar/Euro (AUDEUR) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, AUDEUR finished Wednesday at 0.6182 gaining 19 pips (0.31%).
Daily Candlestick Chart (AUDEUR as at Sep 16, 2020):
Wednesday's trading range has been 42 pips (0.68%), that's slightly above the last trading month's daily average range of 39 pips. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for AUDEUR.
Buyers managed to take out the key technical resistance level at 0.6174 (now S1), which is likely to act as support going forward. The last time this happened on September 9th, AUDEUR actually lost -0.45% on the following trading day. Prices are trading close to the key technical resistance level at 0.6210 (R1).
Although the FX pair is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
With prices trading close to this year's high at 0.6261, upside momentum could speed up should the forex pair be able to break out to new highs for the year. Trading close to July's high at 0.6210 we might see further upside momentum if potential buy stops at the level get activated.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for AUD/EUR. Out of 355 times, AUDEUR closed higher 50.70% 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 nine trading days, showing a win rate of 50.42% with an average market move of 0.04%.