Today’s Fed announcement that “many” Fed members are too concerned about global growth (especially China) to raise rates soon sent the USD into a tailspin. The announcement also emboldened the AUD against the EUR. The Eurozone is China's largest trading partner, and it stands to reason that a weak China is bad for the Eurozone. The same is true for the AUD, and perhaps the market is ignoring the Eurozone flexibility that Australia's economy lacks.
Looking at the chart the moment of truth is upon us in the form of a support/resistance line at 1.5550. A break below this line could be the beginning of a major push lower in EUR/AUD as low as 1.38 over the medium term.
I believe a EUR/AUD bounce here is more likely than a fall, and the bullish inverted hammer could be the beginning, but it needs confirmation.
sealionllc.com
Looking at the chart the moment of truth is upon us in the form of a support/resistance line at 1.5550. A break below this line could be the beginning of a major push lower in EUR/AUD as low as 1.38 over the medium term.
I believe a EUR/AUD bounce here is more likely than a fall, and the bullish inverted hammer could be the beginning, but it needs confirmation.
sealionllc.com
Nota
Confirmation failed and prices are lower now - could fall to 1.5125 before finding meaningful support
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For more analysis, signals, education, and more sign up for Forex Forecast. It's free.
positionforex.my.canva.site/bio-link-site
positionforex.my.canva.site/bio-link-site
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.