EUR/AUD is consolidating around a key area of interest ahead of potentially major catalysts.
Think the pair is in a position to extend a weeks-long uptrend?
We’re taking a closer look at the 4-hour time frame!
EUR/AUD 4-hour Forex Chart by TradingView
The European Central Bank (ECB) is widely expected to cut interest rates by 25 basis points this week, a move already well-telegraphed by officials. Market focus is shifting to the Bank’s forward guidance, which could hint at caution toward further near-term cuts and spark profit-taking after the decision.
Meanwhile, the Australian dollar is struggling for direction as optimism over U.S.-China trade talks competes with concerns about slowing global growth and rising geopolitical tensions.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the euro and the Australian dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
EUR/AUD, which has been making higher highs and higher lows since mid-May, recently turned lower from the 1.7700 psychological handle but found support near 1.7575.
The pair’s current levels align with ascending channel support and sit close to the 4-hour chart’s 100 SMA and Pivot Point line. The 1.7575 to 1.7600 zone has also been a key area of interest, serving as both support and resistance in recent weeks.
Bullish candlesticks and a breakout above the current consolidation could open the door for a retest of the 1.7700 highs or even the R1 (1.7732) level near the channel top.
However, a bearish breakout or consistent trading below the S1 (1.7497) Pivot Point line could drag EUR/AUD toward lower support levels like 1.7400 or 1.7350.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment!
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
