Forex traders could argue that the EURAUD exchange rate encapsulates global trade and the sentiment around it.
The Aussie dollar has strengthened against its US counterpart during Covid but the trend versus the Euro in that period has been less pronounced.
At its current levels of 1.5796, the rate is bang in the middle of a series of key moving averages with the 200 day MA just above at 1.58945 and the 20 and 50-period lines just below at 1.57433 and 1.56310 respectively.
The one-month low for the pair is at 1.56007 and the one-month high is up at 1.58507.
EURAUD Analysis & Forecast
You get the sense that we are waiting for a catalyst to create the next move in EURAUD. despite the fact that technically it’s considered to be a strong bull, with medium to long term potential upto 1.64.
However, to get there we will need to see the one-month high taken out and EURAUD just hasn’t felt comfortable anywhere near 1.5850, since the middle of May. In the absence of the aforementioned catalyst, we could remain range-bound for the near term and perhaps for the rest of the summer.
Darren is a veteran of the financial markets with almost 36 years of experience under his belt. He has worked in trading, sales, analytical, and research roles, he has been a regular guest & commentator on financial television channels and publications. During his career, Darren has been fortunate to act for and advise major hedge funds and investment banks as well as HNWI. Darren analyses the markets using a blend of technical and fundamental analysis