HomeContributorsTechnical AnalysisEURAUD Looking Neutral in Short-Term and Bullish in Medium-Term

EURAUD Looking Neutral in Short-Term and Bullish in Medium-Term

EURAUD is losing some ground during today’s trading after finishing the day higher in the three preceding days.

The RSI has to a large extent been moving sideways over the last few days, pointing to the absence of momentum in either direction. The indicator is currently at 48, close to the 50 neutral-perceived level.

Upside movements could meet resistance at around 1.5552, this being the current level of the middle Bollinger line – a 20-day moving average line. Further above, the focus would shift around the near two-year high of 1.5769, which also encapsulates the upper Bollinger band (1.5773), for additional resistance to stronger bullish movement.

On the way down, support might come around the current level of the 50-day MA at 1.5361. The range around this level includes the lower Bollinger band (1.5329), as well as December 15’s five-week low (1.5321).

The medium-term picture is looking bullish: both the 50- and 100-day MAs maintain a positive slope with price action taking place above them. A bullish (golden) cross was also recorded in late September when the 50-day MA moved above the 100-day one. Notice though that the price is at the moment not far above the current level of the 50-day MA. A drop below this mark – 1.5361 – would weaken the bullish medium-term structure, tilting it towards neutrality.

Overall, the short-term bias is looking neutral and the medium-term outlook looks predominantly bullish.

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