Commentary provided today is aimed at understanding the 3 important things to keep in mind when trading and/or investing in the EURAUD. The Daily time frame chart below captures price action from ~ August 21, 2015 till present date:
Chart patterns, (which includes trend lines) are utilized in this analysis to point out 3 key areas to pay attention to that are numbered on the EURAUD chart. These are discussed below:
(1) The bearish trendline in the EURUAUD that is established by price rejecting approximately 1.65885 and 1.61835 on August 25, 2018 and March 28, 2018 respectively. A close above ~1.62486 would imply resumption of the uptrend in the EURAUD.
(2) A rising diagonal pattern (wedge) as drawn here captures price between June 5, 2017 and March 22, 2018. This indicates exhaustion and a break outside of the wedge eventually resulted price moving back to support (i.e. number 3) which is discussed next.
(3) Price between 1.53175 and 1.51352 should be watched closely as it indicates support for the EURAUD. Retracement in price action after exiting the wedge found support in this area on January 10, 2018 with another successful test of support on June 6, 2018.
Use of at least 2 pivots to connect or draw a valid trendline therefore implies that the top of the support area (1.53175) is indeed valid and any EURAUD investing and/or trading must be aware of price remaining range bound to uptrend for now.
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