Back
11 Mar 2015
EURAUD: Expect further downside in coming weeks - Westpac
FXStreet (Bali) - David Coloretti, CMT, Analyst at Westpac, notes that there is enough technical evidence to expect further EURAUD downside in the coming weeks for a target of the September 2014 lows at 1.3790/10.
Key Quotes
"EURAUD is emerging from its recent range with a negative momentum and trend bias. Trend structure is crucial to understanding the current directional bias. In the past 18 months, price has produced a consecutive lower low and lower high. This is cause to believe that the LT trend has shifted from up to down. Shorter term, MT momentum bias is clearly negative. This is reason to expect further downside in the coming weeks and a likely test of the September 2014 lows at 1.3790/10. If this level is broken, we target a 50% retracement of the 2012 to 2014 uptrend towards 1.3220/40."
Key Quotes
"EURAUD is emerging from its recent range with a negative momentum and trend bias. Trend structure is crucial to understanding the current directional bias. In the past 18 months, price has produced a consecutive lower low and lower high. This is cause to believe that the LT trend has shifted from up to down. Shorter term, MT momentum bias is clearly negative. This is reason to expect further downside in the coming weeks and a likely test of the September 2014 lows at 1.3790/10. If this level is broken, we target a 50% retracement of the 2012 to 2014 uptrend towards 1.3220/40."