© Dukascopy Bank SA
Yesterday's bearish reaction was stopped today, as the EUR/AUD currency pair experiences a huge bullish correction, which already managed to breach the 200-day SMA, and now the price is approaching the upper Bollinger band at 1.2476, which is expected to reverse the prevailing movement upwards. However, if it fails to stop the rally, then the currency couple might reach the weekly R3 at 1.2574, which in turn might bring some bearish momentum. Moreover, the overall indicator outlook remains positive, thus supporting the prevailing uptrend.
Traders' sentiment
SWFX market participants obtained some optimism regarding the EUR/AUD currency pair, as more than 54% of traders hold long positions and almost 46% of traders hold short positions. The situation with orders, however, shows a complete contrast, since only 18% of traders ordered to buy and almost 82% ordered to sell the single European currency.
© Dukascopy Bank SA