FXstreet.com (San Francisco) - After losing ground for three straight days, intraday price action Thursday for EUR/AUD resulted in the print of a bullish pin – an event that can precede price reversals and often forms at market highs and lows.
The market traded a 100-pip daily range between 1.2505 and 1.2605 before closing the North American session with a slight 15-pip gain to 1.2590.
Worthy of note, the mentioned price action formed in an area of dynamic support: a 23.6% Fibonacci retracement at 1.2533 attracted bids, as did the June 22 peak at 1.2525. The 21-day EMA (1.2503) prevented further slides earlier in the day.
The underlying trend bias for EUR/AUD remains bearish, however, in the medium term, the path of least resistance lies to the upside, which supports the bullish outlook following this daily pin.
If the market bounces further from this area of confluence, the 1.2660 level offers immediate resistance (May 31 low), then 1.2770 (may 17 low). If the retreat from recent 4-month highs manage to extend, support is noted at 1.2435 (June 29 high) and 1.2390 (Sep 5 high).
The market traded a 100-pip daily range between 1.2505 and 1.2605 before closing the North American session with a slight 15-pip gain to 1.2590.
Worthy of note, the mentioned price action formed in an area of dynamic support: a 23.6% Fibonacci retracement at 1.2533 attracted bids, as did the June 22 peak at 1.2525. The 21-day EMA (1.2503) prevented further slides earlier in the day.
The underlying trend bias for EUR/AUD remains bearish, however, in the medium term, the path of least resistance lies to the upside, which supports the bullish outlook following this daily pin.
If the market bounces further from this area of confluence, the 1.2660 level offers immediate resistance (May 31 low), then 1.2770 (may 17 low). If the retreat from recent 4-month highs manage to extend, support is noted at 1.2435 (June 29 high) and 1.2390 (Sep 5 high).
