17 Oct 2014
EUR/AUD: Critical 1.46 / 38.3 fib breakout, 200-DMA within reach
FXStreet (Bali) - EUR/AUD is for the first time since early June this year exchanging hands above a critical horizontal resistance-turned-support at 1.4550/1.46, assisted by the pick up in risk sentiment on Thursday.
In a EUR/AUD article from earlier this week - Bullish dynamics to allow 1.46 breakout?- it was argued that bulls were in control, using the 20-day EMA as a key technical reference to buy the dips, adding pressure to the critical resistance mentioned (also aligning perfectly with the 38.2% fib retrac 2014 fall). Besides, other key MAs on the daily - 20,50,100 - have also kept the technical landscape constructive.
The next upside target for buyers post Thursday's breakout should be a retest of the 200-day EMA at 1.4725/30 - we came fairly close with a high of 1.4702 - ahead of 1.4830 (50% fib retrac from this year's decline). On the downside, any setback should be well guarded by the 20-day EMA, coming at the 1.45 round number today, ahead of 1.44 (confluence 50,100-day EMAS).
In a EUR/AUD article from earlier this week - Bullish dynamics to allow 1.46 breakout?- it was argued that bulls were in control, using the 20-day EMA as a key technical reference to buy the dips, adding pressure to the critical resistance mentioned (also aligning perfectly with the 38.2% fib retrac 2014 fall). Besides, other key MAs on the daily - 20,50,100 - have also kept the technical landscape constructive.
The next upside target for buyers post Thursday's breakout should be a retest of the 200-day EMA at 1.4725/30 - we came fairly close with a high of 1.4702 - ahead of 1.4830 (50% fib retrac from this year's decline). On the downside, any setback should be well guarded by the 20-day EMA, coming at the 1.45 round number today, ahead of 1.44 (confluence 50,100-day EMAS).