EURAUD finds buyers again around 1.6097
Euro/Australian Dollar (EURAUD) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
EURAUD finished the week -1.63% lower at 1.6133 after edging higher 1 pip (0.01%) today on low volume. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (EURAUD as at Feb 14, 2020):
Friday's trading range has been 69 pips (0.43%), that's far below the last trading month's daily average range of 115 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for EURAUD.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Southern Doji which is known as bullish pattern and one neutral pattern, the Doji.
After trading down to 1.6097 earlier during the day, the forex pair bounced off the key technical support level at 1.6107 (S1). The failure to close below the support could increase that levels importance as support going forward. When prices bounced off a significant support level the last time on Tuesday, EURAUD actually lost -0.74% on the following trading day. After having been unable to move lower than 1.6086 in the prior session, the pair found buyers again around the same price level today at 1.6097.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might speed up should prices move below the close-by swing low at 1.6086 where further sell stops could get activated. With prices trading close to this year's low at 1.5973, downside momentum might accelerate should EUR/AUD break out to new lows for the year. Trading close to December's low at 1.5964 we could see further downside momentum if potential sell stops at the level get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Doji" stand out. Although it is usually interpreted as neutral, it has actually shown to be bearish for EUR/AUD. Out of 143 times, EURAUD closed lower 58.74% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 55.24% with an average market move of -0.11%.
With five out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are USDCAD losing -0.12% and EURUSD closing -0.08% lower. On the flipside the best performers have been USDCHF closing 0.28% higher and GBPUSD gaining 0.02%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDSEK surging 0.51% and EURSEK closing 0.43% higher. The worst performers of the day have been EURHUF tanking -0.65% and USDHUF closing -0.58% lower. Read more