Technical Talk:EUR/AUD Technical Analysis: Inverted hammer at 50% Fibo guards upside, although doji confirms traders’ indecision
Our preference: the downside prevails as long as 1.5891 is resistance.
Alternative scenario: above 1.5891, look for 1.5938 and 1.5965.
The EUR/AUD pair trades little positive around 1.5970 during the early Asian sessions on Tuesday.Daily chart confirms traders’ indecision on Monday’s “Doji” candle after guarding the upside by Friday’s “Inverted Hammer”.
While “inverted hammer” supports the claim of consolidation considering across the board USD strength, “doji” portrays traders’ dilemma.
The 100-day simple moving average (SMA) at 1.5930 can offer immediate support to the pair before diverting market attention to the 1.5855-50 support-zone, including 61.8% Fibonacci Retracement of its December-January surge.In case prices slip under 1.5850 on a daily closing basis, the 1.5730 and the 1.5670 may come back on the chart.
Alternatively, 50% Fibonacci retracement level of 1.6015 seems adjacent upside barrier for the pair,
a break of which can propel the quote to upward sloping resistance-line at 1.6065.
During the pair’s successful rise over 1.6065, the 1.6100 and the 1.6185 may please the buyers.