EURAUD TeamFX Technical Review.
Daily Time Frame:
4 Hour Time Frame:
1 Hour Time Frame:
Technical review:
One of the more volatile Forex pairs over the recent months. Price saw massive swings moves starting around the 1.6000 level and surging higher into the 1.9800 level where the peak levels were witnessed mid Stock Crash in March. Over the higher timeframes, since then price has continued to move lower pulling back as nearly all Governments and Central Banks intervene to stabilise the financial markets. As we look closer at this pair. Price towards the end of March month end trading held the 1.7850 level before continue lower through April. At present we can see now price has pulled back to the key psychological level around the 1.70000. Structurally at the moment on the higher timeframes we are seeing that consolidation take hold as price continues to range between that 1.7000 and 1,7350 levels. Additionally, as we look at the lower timeframes, this current consolidation becomes eve more visible with the bearish rectangular structure holding firm at the moment. In the majority of cases, when a bearish rectangular structure occurs its important to focus on the continuation of the current trend. Within this pair its for a continuation to the downside. For this to occur, traders should be looking for the break below and engulfing the current lows at the 1.7000 level - in effect creating new lower lows in the trend. You also have to consider price is currently held between the 200 & 800 EMA levels on the 4hr timeframes and with any subsequent breakout should see a run at either of the respective EMA levels. It is important to note that the next move will most likely be correlated with what happens in the stock markets. If we see further downside and panic selling in the stock markets then I would be expecting upside correlation on this pair, whilst on the other side any new or fresh stimulus packages would allow for the continuation in the relief rally and downside movement. Both swing targets identified at the 1.7850 and 1.6600 levels depending on which scenario is confirmed.