© Dukascopy Bank SA
Yesterday the EUR/AUD currency couple bounced off the weekly PP at 1.2444, and now the price is about to test the 20-day SMA at 1.2391, which is expected to reverse the interim bearish tendency. In case it fails to stop the current movement downwards, then next support at 1.2336 (weekly S1) is very likely to bring some bullish impulse. Moreover, the RSI indicator still shows a neutral signal, and the overall indicator outlook is positive, therefore a trend reversal could be expected in the nearest future.
Traders' sentiment
SWFX market participants are rather neutral about the potential strength of the single European currency, since 43% of traders hold bullish positions and 57% of traders hold bearish positions. However, the distribution of orders shows that traders anticipate the Euro to lose value against the Australian Dollar, as only 28% of traders ordered to buy and more than 72% of traders ordered to sell the single European currency.
© Dukascopy Bank SA