EUR/AUD Breakout Might Develop Legs

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EUR/AUD Breakout Might Develop Legs

EUR/AUD Highlights:EUR/AUD breaking out above well-tested resistanceDegree dates again to 2015, however been in play rather a lot


EUR/AUD Highlights:

  • EUR/AUD breaking out above well-tested resistance
  • Degree dates again to 2015, however been in play rather a lot in previous two years
  • Might run arduous with a risk-off occasion

EUR/AUD has had important play across the 16555 degree since early 2019, with the origination of the extent courting again to August 2015 when markets received roiled on Chinese language slowdown fears. However the current motion round it pre and put up corona panic cemented it as a degree of significance.

Given how a lot time has been spent round 16555 the 200-day has develop into hinged to the identical neighborhood since Could. The breakout might be fairly important so long as it holds. Within the absence of a risk-off occasion we might see 17500, with the assistance of a large risk-off occasion we might see a lot larger ranges.

The correlation between the VIX and EUR/AUD is often optimistic throughout all time-frames, with the previous yr holding a statistically important 0.91. If shares dump then search for the pair to spike together with volatility.

Look ahead to a retest of prior resistance on a pullback, it might provide a low threat entry for would-be longs. A breakdown again beneath 16500 will carry the breakout into query and put value again contained in the vary it had been suck in since June, and on {that a} impartial stance is probably going warranted.

EUR Forecast

EUR Forecast

Really useful by Paul Robinson

Take a look at the This fall EUR Forecast

EUR/AUD Every day Chart (breaking away from long-term resistance)

EUR/AUD daily chart

EUR/AUD Weekly Chart (2015 origination)

EUR/AUD weekly chart

EUR/AUD Chart by TradingView

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—Written by Paul Robinson, Market Analyst

You may observe Paul on Twitter at @PaulRobinsonFX





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