By: Mike Kulej
The EUR-AUD pair has been in a prolonged down trend since the original financial meltdown of 2008. It developed of the steadiest and best defined trends that currency markets produced in recent years, falling from 2.1110 to almost 1.3600. During this time, the market had almost no corrections. This could be changing.
On a daily chart, the price is right at 100 SMA and near a previous minor high of 1.4730. If this is broken, the EUR-AUD is likely to test the 1.5455 resistance. The development of the “three white soldiers” candlestick pattern is bullish, as are other indicators. On the three Line Break chart the downtrend line is broken. It had been holding fast for such a long time, that any move above it is important and bullish in nature.
Even the daily MACD indicator is turning positive. The indicator is about to cross the zero line, another positive signal. All this suggests that the EUR-AUD is trying to turn around and start heading up. Fundamentally, any news of a slacking global demand for Australian commodities should help this pair to climb higher.
