From Investor to Scalper – series of studies created in cooperation with broker BDSwiss, in which we take a financial instrument and the analysis includes a detailed look at the value from the monthly chart and ending with H1/M30.
EURAUD for nearly four years moves in a consolidation, which in August 2015 market tried to break thru the top. Ultimately, however those increases were negated and due to a subsequent declines we reached in around important support coinciding with the lower bound of growth channel.
Looking on the weekly chart we see that market very accurately arrived in the vicinity of said zone, where two weeks ago there was a reaction of demand. Therefore in the medium term we expect increases. This scenario also supports current macroeconomic situation and the recent statement of the Governor Lowe, who said that the Australian dollar is too expensive.
On daily chart we see that growth to be continued in longer term we would have to first overcome the downtrend line and located a bit earlier local resistance level around 1.4090, which still has not been tested from below. While it does not happen there will be bearish sentiment and I would be wary opening long positions.
Looking at the hourly interval (H1) we find that for growth to be continued we would have to overcome local resistance around 1.4006 level. It should be noted, however, that the market still not tested from the top (as support) defeated last week’s level of 1.3830.
The best solution would be therefore, if in the near future appeared bearish impulse as a result of which there would be the said re-test.
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