EURAUD closes lower for the 2nd day in a row
Euro/Australian Dollar (EURAUD) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, EURAUD ended Wednesday at 1.6175 losing 50 pips (-0.31%).
Daily Candlestick Chart (EURAUD as at Sep 16, 2020):
Wednesday's trading range has been 111 pips (0.68%), that's slightly above the last trading month's daily average range of 104 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 EURAUD.
Prices are trading close to the key technical support level at 1.6103 (S1). Prices broke below the key technical support level at 1.6198 (now R1), which is likely to act as resistance going forward. The last time this happened on September 9th, EURAUD actually gained 0.44% on the following trading day.
Although the currency is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
With prices trading close to this year's low at 1.5973, downside momentum might accelerate should the market break out to new lows for the year. Trading close to July's low at 1.6103 we could see further downside momentum if potential sell stops at the level get activated.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) below 20" stand out. Its common bullish interpretation has been confirmed for EUR/AUD. Out of 290 times, EURAUD closed higher 51.03% 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 49.66% with an average market move of 0.01%.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 0.61% and NZDUSD closing 0.27% higher. On the flipside the worst performers have been USDJPY closing -0.47% lower and EURUSD losing -0.25%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPPLN surging 0.81% and ZARJPY closing 0.78% higher. The worst performers of the day have been EURZAR tanking -1.42% and CHFZAR closing -1.28% lower. Read more