EUR/AUD – Dynamic Upward Movement Is Only A Correction
EUR/AUD – Dynamic Upward Movement, Is Only a Correction
Since August 2015, EUR/AUD moves in a downward trend. Yesterday price dynamically rebounded from support area 1.4350 and within a few hours, made upward movement (620 pips). Awaken expectations after Thursday’s ECB meeting helped here a lot: central bank didn’t extend QE program as expected.
However, the market overreacted and that was caused not due to the lack of correction for a long time, but due to the ECB. Current rebound has to be treated just like a correction before new wave of falls. Today price reached Fibonnaci 23,6% 1.4870 and resistance 1.4990. But rebound can reach higher, good level is Fibonacci 38,2% at 1.5200. Don’t forget about today’s very important data from US economy, which may cause volatility in the market (similar to yesterday’s).
Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.