“The recent unwinding of EURAUD shorts by hedge names are well known, but signs are emerging that the buying has stalled. 2 consecutive lower daily closes are seen, the first time it happened since the lows at 1.1605 was carved out,” the analysts add, noting that: “Though more stops are seen above 1.2450, they look unlikely to be triggered in the immediate future. A test of 1.2450 is likely to be coupled with a test of 1.3000 in EURUSD and with the amount of option barriers atop the major, we just do not see it happening on the day,” they conclude.
Immediate support to the downside for EUR/AUD shows at recent session/Sept 04-05 lows 1.2276/62, followed by Friday's lows/Aug 31 highs at 1.2230, and unfilled opening gap at 1.2175 from Monday Sept 02. For the upside, closest resistance comes at recent session/Sept 04 highs at 1.2330, followed by Monday's highs at 1.2365/71, and yesterday's/Sept 05-06 highs at 1.2382/96.