EUR/AUD is back at a major support zone for a FOURTH time since September!
The pair’s been holding this area pretty well so far, but traders are watching to see if the bulls have enough fuel left to defend it again.
We’re taking a closer look at the 4-hour time frame:
EUR/AUD 4-hour Forex Chart by TradingView
Expectations that the Reserve Bank of Australia will keep policies steady this week have been lifting the Aussie, especially after last week’s hotter-than-expected CPI basically killed near-term rate cut hopes.
Over in the Euro Area, mixed mid-tier data and renewed tariff worries could weigh on sentiment as PMI surveys roll out in the coming days. Still, any upside surprises might give the euro a boost later in the week.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the Australian dollar and the euro, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
EUR/AUD has been stuck in a 550-pip range since August and is now back at the 1.7600 support zone that’s held firm a couple of times since September.
If we see bearish candles and consistent trading below 1.7600, sellers could take control and push the pair toward 1.7500 or even the May lows near 1.7250.
On the flip side, if long wicks and bullish candles start showing up around the support zone, that might signal buyers stepping in again.
A solid bounce from this area could send EUR/AUD back toward 1.7900 or even retest the 1.8100 highs from previous months.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
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