EUR/AUD attempts advance to resistance
James Chen November 20, 2014 8:22 PM
<p>EUR/AUD (daily chart shown below) has been attempting a move higher after rising from a double-bottom chart pattern around key 1.4200 support last week. The […]</p>
EUR/AUD (daily chart shown below) has been attempting a move higher after rising from a double-bottom chart pattern around key 1.4200 support last week.
The currency pair’s advance this week tentatively broke out above the 1.4591 high that was hit two weeks ago, before pulling back.
Though the euro and Australian dollar have both shown marked weakness against the US dollar over the past several months, the euro has generally been relatively weaker on a longer-term basis.
Overall, EUR/AUD has been in a downtrend since the beginning of the year to the 1.3800 low in early September. Mid-September saw a modest upside breakout that evolved into a large consolidation and trading range between 1.4200 support (the noted double-bottom) and 1.4700 resistance.
Price action is currently approaching this 1.4700 resistance, which was last hit in mid-October. Any pullback from resistance should continue the entrenched trading range.
In the event of a breakout above 1.4700, the next major upside target resides around the 1.5000 psychological resistance level.
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