EURAUD Advance Hits Significant Resistance
The EURAUD significant daily rally has hit upon multiyear trendline resistance, with weekly oscillators hitting their most overbought levels sine July of 2006. A hold of the downward sloping trendline and a pullback from heavily overbought territory threatens to derail the advance, with significant support seen much further below market prices.
A look at the daily chart shows much the same formation, indicating that the pair has been unable to hold its previous three-year highs through current price action. A close below this mark will signal exhaustion from EUR bulls and leave the Australian dollar prone to subsequent appreciation. Daily oscillators unsurprisingly remain in very heavily overbought territory, leaving the pair to trade heavily through short term price action.
- David Rodriguez, Currency Analyst