© Dukascopy Bank SA
The downtrend, which started a couple of days ago, has successfully managed to continue, as today the EUR/AUD currency couple experienced another bearish reaction, which has already managed to touch the weekly S2, and at the particular moment the price is about to test the lower Bollinger band at 1.2207, which is expected to stop the prevailing tendency. In case it is breached, then the currency pair might reach the weekly S3 at 1.2152, which in turn is very likely to bring some bullish impulse. Moreover, the overall indicator outlook is neutral, therefore no significant trend reversals are expected in the nearest future.
Traders' sentiment
SWFX market participants are optimistic regarding the potential strength of the single European currency, since 60% of traders hold long positions and only 40% of traders hold short positions. The distribution of orders, however, shows strong downtrend expectations, as only 19% of traders ordered to buy and 81% ordered to sell the Euro.
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