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EURAUD Rolling over after rejecting 200DMA

Market Analysis

EURAUD, Daily              

As global markets await the thoughts of the BoJ and the FOMC tomorrow (Wednesday) another currency pair appear to be rolling over and returning to their longer term downtrend.

The EURAUD rallied strongly from the August low below 1.4450 to a high at 1.5065 last Thursday (September 14). The high was capped for three days by the 200 DMA, and the subsequent fall broke the 20 DMA yesterday. This three candle down move and break and hold of the 20 DMA on the Daily timeframe, triggered a SHORT position at 1.4820, with Target 1 at 1.4700 and Target 2 at 1.4580.

The longer term Monthly chart is also trading below its 20 period MA and also has support around the 1.4700 level. The 14 Day ATR is currently around 150 but the Parabolic SAR has yet to revert.

 

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Stuart Cowell

Market Analyst

HotForex

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