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EUR/AUD just pulled back after making new 2024 highs!
How low will the pair go before the bulls step back in?
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your fundie homework on the euro and the Australian dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
EUR/AUD 4-hour Forex Chart by TradingView
If your research points you to the euro gaining traction ahead of and after the European Central Bank (ECB)’s policy decision, then you can take a closer look at EUR/AUD possibly finding support from the 1.6600 Pivot Point area.
As you can see, 1.6600 lines up with a resistance zone from earlier this year. This time, the inflection point also represents the 38.2% Fibonacci retracement of last week’s upswing.
A couple more bullish candlesticks may attract enough bulls to extend EUR/AUD’s uptrend. The 1.6700 psychological level and previous highs is a good area to eye if you’re planning on buying EUR/AUD but you can also aim higher if you see enough bullish momentum.
If you believe that this week’s market themes will draw in more EUR bears than bulls, then you can also plan for a potential bearish trade.
Just check that the pair has sustainably broken below the support area that we’ve identified and that it has a potential fundamental catalyst that can fuel further downside momentum.
Whichever bias you choose to trade and execute, make sure to use your best risk management practices so you can trade for another day!
