EURAUD breaks below key technical support level
Euro/Australian Dollar (EURAUD) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
EURAUD ended Thursday at 1.8192 losing 68 pips (-0.37%). Trading 313 pips higher after the open, the pair was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on Monday, EURAUD lost -1.44% on the following trading day. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (EURAUD as at Mar 26, 2020):
Thursday's trading range has been 450 pips (2.46%), that's slightly below the last trading month's daily average range of 509 pips. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for EURAUD.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Prices broke below the key technical support level at 1.8220 (now R1), which is likely to act as resistance going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might accelerate should prices move below the close-by swing low at 1.7835 where further sell stops could get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. Its common bearish interpretation has been confirmed for EUR/AUD. Out of 253 times, EURAUD closed lower 53.36% of the time on the next trading day after the market condition occurred.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 2.72% and NZDUSD closing 1.88% higher. On the flipside the worst performers have been USDCHF closing -1.43% lower and USDJPY losing -1.42%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPHKD surging 2.72% and GBPZAR closing 2.65% higher. The worst performers of the day have been USDMXN tanking -4.12% and USDNOK closing -3.12% lower. Read more