© Dukascopy Bank SA
Today EUR/AUD experienced a significant bearish reaction, which has already managed to breach the 20-day SMA at 1.2396, and now the currency couple is about to test the weekly R1 at 1.2336, which might slow down the prevailing downtrend. In case it is broken, then the price might reach the lower Bollinger band at 1.2269, which in turn is expected to reverse the current movement downwards. Moreover, the overall indicator outlook still shows a buy signal, therefore a soon trend reversal could be expected.
Traders' sentiment
Traders at SWFX market have slight downtrend expectations, since 39% of traders hold long positions and 61% of traders hold short positions. The distribution of orders shows even stronger bearish tendency expectations, as only 23% of traders ordered to buy and 77% of traders ordered to sell the single European currency.
© Dukascopy Bank SA