EURAUD Comes Back Above Key, Long-term Support

By Tomasz Wisniewski|

Published: October 17 2022, 09:01 GMT+0

EURAUD Comes Back Above Key, Long-term Support


Last week was decisive for the EURAUD as the price managed to create a proper, long-term trending signal. The signal is to buy and it’s based on what happened on the weekly chart.

The key level for the EURAUD in the past weeks was a resistance on 1.535 (orange). This resistance was had previously been a key support since 2018, until February of this year, and was protecting the price from bigger plunges.

On February, the price managed to break that support but the drop was not spectacular. The EURAUD almost straight away created a double-bottom formation (yellow). The double-bottom fulfilled its destiny last week, when the price climbed back above the orange resistance, which at the same time was the neckline for this pattern.

In the meantime, the price also managed to break the mid-term down trendline (green), which serves as an additional confirmation of a new bullish sentiment.

As long as the price stays above the 1.535 support, the sentiment is bullish and the next few months will most probably be positive for the EURAUD. The price dropping below would cancel the optimism but this scenario is currently less likely to happen.