Range traders gather around!
EUR/AUD is back testing a key resistance area for the second time this month.
Will the range pattern hold? Or will we see a breakout in the next trading sessions?
EUR/AUD 4-hour Forex Chart by TradingView
Rising U.S.-China trade tensions are putting a lid on Aussie demand, keeping the China-linked and commodity currencies on the back foot against the majors.
The euro’s not looking too strong either. Soft economic data and political noise out of France have made it tough for traders to find reasons to buy the common currency.
All eyes are now on the upcoming meeting between Presidents Trump and Xi to see if it can calm the waters for these risk assets.
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 Euro and the Australian dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
EUR/AUD, which has been in an observable range since September, is now bumping up against the 1.7950 resistance area for the second time in just a few days.
If sellers step back in and the pair stays below the 1.7900 psychological level, it could draw in enough sellers to drag it toward the 1.7800 mid-range zone, or even retest the 1.7600 support area.
But if buyers manage to push prices past 1.7950 and hold above it, we could see a run toward the 1.8000 handle and maybe even the previous highs near 1.8150.
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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