EURAUD is the biggest mover today. What do the charts say?

Technical Analysis

What happened technically?

The EURAUD is the biggest mover today, falling by 0.88%.   What happened technically?

Looking at the hourly chart above, the pair on Tuesday moved into a swing area going back to August 2. The price rebounded on Wednesday, but fell back below the 100 and 200 hour MA by the close.  

Today, the Asian session high saw sellers leaning against those MAs (blue and green lines) and that gave sellers the go ahead to push lower.  

Now… the price did stall at the swing area between 1.6390 and 1.6409 (yellow area), and moved higher  later in the Asian session, but in the North American session, the pair has run to new session lows – breaking below the “yellow area” mainly on the back of the weakness in the EURUSD.  

The pair is now below that swing area, turning what was support into resistance.  For traders, stay below the 1.6409 is close risk now.

The next target is the 50% of the move up from the July 23 low at 1.63396.  Below that the 1.6319 area would be the next target (see chart above).    

Risk…again… is a move above the 1.6390  to 1.6409 area.  

ForexLive

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