Australian Dollar, AUD/NZD, EUR/AUD, Moving Average, Range, Reversal – Talking Points
- of australian dollar stay within range EUR and new zealand dollar At this point
- Although there are some similarities, each currency pair has unique characteristics
- Momentum, retracement and triangle can be some markers
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euro/australian dollar technical analysis
EUR/AUD has been suppressed between 1.6200 and 1.7100 for four months and may be in range trading mode at the moment. Click the banner below to learn more about range trading.
The price has struggled this week to overcome recent highs just below 1.6900, which peaked at 1.6845 on Monday. These levels could provide resistance on a retest ahead of the two-year high at 1.7065.
Wednesday’s decline remains below the 100-day simple moving average (SMA) near 1.6550, which could provide support for further declines.
Further down, support could lie at previous lows of 1.6445 and 1.6320 before potential support zones at 1.6235 and 1.6265.
The 10-day, 21-day, 34-day, 55-day, and 100-day simple moving averages (SMAs) clustered between 1.6550 and 1.6710 may support the range trading view.
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EUR/AUD daily chart
Chart created with TradingView
EUR/AUD Technical Analysis – Weekly
Zooming out to the weekly chart, EUR/AUD remains in an uptrend channel.
The price has been trading above the 52-week SMA since September 2022, when this trend began to emerge. A cross below this SMA may indicate trend exhaustion.
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EUR/AUD weekly chart
Chart created with TradingView
Technical analysis of Australian dollar/New Zealand dollar
AUD/NZD tends to trade in ranges, sometimes in very wide ranges, which is not surprising given the proximity and similarities of both economies.
Similar to EUR/AUD above, the 10-day, 34-day, 55-day, 100-day, 200-day, and 260-day simple moving averages (SMAs) of AUD/NZD are concentrated between 1.0777 and 1.0825. may support the view of range trading.
Yesterday’s price action showed a spinning top candlestick, which could suggest that a reversal could be occurring.
The high of 1.0916 seen yesterday was just shy of September’s high of 1.0918 and July’s high of 1.0926. This area could provide upward resistance ahead of a potential resistance zone around 1.1050.
Support may lie at existing breakpoints or previous lows at 1.0732, 1.0725, 1.0718, 1.0610, and 1.0560.
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Australian dollar/New Zealand dollar daily chart
Chart created with TradingView
AUD/NZD Technical Analysis – Weekly
Due to the range contraction, AUD/NZD has formed a symmetrical triangle.
It is currently trading above the top of the triangle, and if it closes above the downtrend line, it could signal a breakout and show some bullish momentum.
If it does not close above the downtrend line, it could turn out to be a false break, and in that scenario the triangle formation remains intact and could signal a reversal.
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Australian dollar/New Zealand dollar weekly chart
Chart created with TradingView
— Written by Daniel McCarthy, DailyFX.com Strategist
Please contact Daniel. @DanMicCarthyFX on Twitter
