Technical market insight: EUR/USD and AUD/USD

Aaron Hill FP Markets

EUR/USD:

Technical observations out of the monthly chart reveal large-scale support at $1.1816-1.1299, though prime support rests at $1.1473-1.1583 which happens to share chart space with a 100% Fib projection at $1.1613. This echoes a technically bullish picture, placing the retracement slide on the daily timeframe from late July tops at $1.1909ish in question. North of $1.1909, buy-stops could fuel moves to prime resistance at $1.2115-1.1990, a place active sellers may reside.

Shorter-term flow has H4 shaking hands with demand at $1.1783-1.1810, following a three-day long decline from $1.1939-1.1902 supply. The chart has labelled this area as brittle, as prime support inhabits the $1.1764-1.1776 neighbourhood and sell-stops beneath the aforementioned demand could help fuel willing $1.1764-1.1776 bids. In conjunction with the H4, the H1 chart centres its attention on $1.18. Although $1.18 joins hands with a 61.8% Fib retracement and a 1.618% Fib projection at $1.1797, the Quasimodo resistance-turned support at $1.1775 (which converges with prime H4 support at $1.1764-1.1776) is positioned to welcome any $1.18 whipsaw.

AUD/USD:

According to the weekly timeframe, August dipped a toe in prime support at $0.6968-0.7242—an area encouraging a two-week bullish phase. Despite this week turning lower, chart studies point to $0.7849-0.7599 as a potential upside objective. Consequently, further upside could be in the offing. Interestingly, from the daily timeframe, prime resistance made an entrance at $0.7506-0.7474 and recently hit its support target at $0.7286-0.7355. This could see longer-term movement attempt to scale through stacked supply between $0.7617 and $0.7408 to $0.7621: a Quasimodo support-turned resistance.

Against the backdrop of the bigger picture, the H4 scale, as expected, took hold of the lower side of the decision point from $0.7395-0.7410. Stacked demand is close by between $0.7282 and $0.7343, though prime support rests at $0.7236-0.7266. Lower on the curve, the H1 timeframe shows what appears feeble demand at $0.7331-0.7350, open to a possible whipsaw into prime support from $0.7310-0.7322, which is joined by a decision point at $0.7307-0.7324. A $0.7331-0.7350 whipsaw to $0.7310-0.7322 would be in line with the daily timeframe ‘hitting target’ and possibly reversing, as well as monthly direction.

Author

Aaron Hill

FP Markets

After completing his Bachelor’s degree in English and Creative Writing in the UK, and subsequently spending a handful of years teaching English as a foreign language teacher around Asia, Aaron was introduced to financial trading,

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