EUR/AUD Price Analysis: bulls eye a 50% mean reversion near 1.5820

EUR/AUD is correcting the recent drop and targets a 50% mean reversion.
The channel is a perfect environment for a retracement to test such structures.

Ross J Burland FXStreet

EUR/AUD is moving in a daily sideways channel which is creating choppy price action from one day to the next.

The current trajectory is to the upside as the price corrects the latest daily bearish impulse.

The following illustrates a potential test of the prior lows and an onward move to the 50% mean reversion of the bearish impulse.

A break of the 21 EMA will add extra conviction for a run to the 1.58 level and beyond there to 1.5820 as the neckline of the M-formation.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

EUR/USD weakens below 1.1700 as Middle East tensions drive US Dollar strength

The EUR/USD pair trades with mild losses around 1.1685, the lowest since late January, during the early Asian session on Tuesday. The US Dollar gathers strength against the Euro as escalating tensions in the Middle East boost safe-haven currencies. The preliminary reading of the Harmonized Index of Consumer Prices from the Eurozone will be published later on Tuesday.

GBP/USD hits new yearly lows near 1.3300

GBP/USD adds to the recent bearish tone, approaching to the key 1.3300 support to reach fresh YTD troughs against the backdrop of the robust performance of the US Dollar. Indeed, Cable’s decline comes amid the firm demand for the safe-haven space in the wake of the US and Israel attacks to Iran.

Gold clings to gains as US-Iran conflict continues to underpin safe-haven assets

Gold retains positive bias for the fifth consecutive day on Tuesday as rising geopolitical tensions in the Middle East continue to underpin safe-haven assets. However, a bullish US Dollar could keep the bullion below its highest level since late January, set on Monday, warranting caution before positioning for any further appreciation.