26.5 C
HomeForex EducationForeign exchange Watchlist: Can EUR/AUD Lengthen Its Uptrend?

Foreign exchange Watchlist: Can EUR/AUD Lengthen Its Uptrend?

EUR/AUD has pulled again to 1.4900 after hitting highs close to 1.5300 in Might.

Can the pair make new Q2 2022 highs within the subsequent few days?

Right here’s the chart that I’m taking a look at right now:

EUR/AUD 4-hour Forex Chart

EUR/AUD 4-hour Foreign exchange Chart

EUR/AUD has been making greater highs and better lows since April when the pair discovered assist on the 1.4350 psychological deal with.

EUR is now on a “greater low” in opposition to AUD because it consolidates in a attainable Inverse Head and Shoulders pattern across the backside of EUR/AUD’s ascending channel close to 1.4800.

Can EUR prolong its uptrend in opposition to AUD?

Techincals are a bit iffy on the 4-hour timeframe with Stochastic approaching the overbought area whereas the 100 SMA narrows its hole with the 200 SMA.

Possibly this week’s occasions may assist merchants discover EUR/AUD’s subsequent course.

The Reserve Bank of Australia (RBA) is widely expected to raise its interest rates right now and, whereas the transfer is generally priced in, a bigger-than-expected price hike or hints of additional tightening may carry extra bulls to AUD’s yard.

A hawkish RBA occasion may drag EUR/AUD again right down to the 1.4800 June lows. It would pull EUR/AUD under its channel assist!

There’s the European Central Bank (ECB) event to think about although.

Phrase round is that we’ll get a affirmation of a July price hike. If EUR bulls are fortunate, we’ll hear hints of a number of price hikes or a hawkish price hike schedule from ECB President Lagarde and her staff.

If merchants select to give attention to ECB’s hawkishness, then EUR/AUD may soar from its present ranges and prolong its 4-hour uptrend above the 100 and 200 SMAs.

What do you assume?

This content material is strictly for informational functions solely and doesn’t represent as funding recommendation. Buying and selling any monetary market includes danger. Please learn our Risk Disclosure to be sure to perceive the dangers concerned.

Read The Original Article

Latest Articles

Explore More

%d bloggers like this: