EUR/AUD Price Analysis: Price shifting towards a bullish environment

EUR/AUD has made a strong retracement to the downside in longer-term demand territory.
The weekly chart offers a bullish outlook as does the daily time-frame.

Ross J Burland FXStreet

Bulls are seeking an entrance as the price pulls-back in a significant Fibonacci retracement.

There is still a way to go yet, but there could be an opportunity in the next series of 4-hour price movements.

The following is a top-down analysis, from a swing trading perspective, that illustrates where the next high-probability bullish setup could evolve from.

Weekly chart

The weekly chart is moving out of bearish and towards bullish territory according to MACD with price testing the 21-week moving average.

The weekly wick is expected to be filled in from a daily extension.

Daily chart

Bulls are seeking a break higher from significant Fibonacci retracements.

The daily wick is an upside correction in the 4-hour time frame which may still need to be filled in, to the downside.

4-hour chart

The price is not in a bullish environment yet, according to the MACD and while trading below the 21 moving average.

There is still room to the downside as far as structure goes and as far as the daily wick is concerned.

However, a break above the resistance bock, MACD will be above zero, the price will be able the 21 moving average and on a restest of the structure, a discount could be on offer.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

EUR/USD trims gains, reclaims 1.1600 and beyond

Following an earlier drop to yearly lows around 1.1530, EUR/USD now manages to recoup part of the ground lost and reclaim the area above 1.1600 the figure in the latter part of the NA session on Tuesday. Meanwhile, the pair’s marked retracement comes in response to the unabate march norht in the US Dollar, always propped up by the intense flight-to-safety environment amid the deteriorating geopolitical landscape in the Middle East.

GBP/USD attacks 1.3300, refreshing three-month lows

GBP/USD is deep in the red near 1.3300, accelerating its downside to renew three-month lows in European trading on Tuesday. The ongoing escalation in the Iran war, combined with rising Oil prices, weighs negatively on the higher-yielding Pound Sterling as the US Dollar capitalizes on increased haven demand.

Gold bounces off lows, back above $5,100

Gold remains on the defensive, eroding part of the recent multi-day advance and managing to trade back above the $5,100 mark per troy ounce on Tuesday. The precious metal initially dropped just below the critical $5,000 threshold on the back of the persistent strength of the Greenback, higher US Treasury yields across the curve and investors' repricing of Fed rate cuts.