Welcome to mid-week trading!
We’re all about the euro today as we explore EUR/AUD’s trend pullback and EUR/CAD’s key resistance level.
Check out these charts!
EUR/AUD: 4-hour
EUR/AUD 4-hour Forex Chart
EUR/AUD’s sharp upswing earlier this month is about to be erased by the downswing that started when the euro found resistance at 1.6200.
How low can EUR/AUD go?
The 1.5950 is a good candidate for a support as it lines up with the 61.8% Fib of the last upswing as well as the mid-channel line on the 4-hour time frame.I’m not seeing hesitation or reversal candlesticks yet, though, so EUR/AUD could still dip to the 1.5750 – 1.5800 zone closer to the 100 and 200 SMA support levels before finding bullish momentum.
Bears can take advantage of the current selling pressure and short EUR/AUD until the pair finds support on the lower time frames.
Euro bulls, on the other hand, can start placing orders on the possible support zones and wait for EUR/AUD to extend its months-long uptrend.
EUR/CAD: Daily
EUR/CAD Daily Forex Chart
EUR/CAD is trading 100 pips below the 1.4600 mark that lines up with the 200 SMA and an inflection point that bulls and bears have been minding since mid-2021. Ouch!
Will the euro extend its downtrend against the Loonie?Stochastic is currently favoring the bears with an overbought signal while the 100 SMA trading and falling farther from the 200 SMA suggests that the downtrend remains intact.
EUR/CAD bears can sell at current levels or at the first signs of momentum and target 2022’s lows near 1.4150.
Feel like buying the euro instead? The odds are against ya but keep an eye out in case EUR/CAD busts through the long-term trend line resistance and starts a longer-term reversal.