Will AUD/EUR reverse its long-term uptrend?
AUD/EUR has started to reverse from a major resistance zone, but will this mark the beginning of a bearish reversal?
AUD/EUR starts to reverse from key resistance
The Australian dollar has been a big outperformer throughout the past few months, with the widespread support for haven assets like the yen and dollar reversing around March and April. With the Chinese industrial sector leading the way out of this crisis, we have seen significant support for commodity prices and thus the Australian dollar. Meanwhile, the rise of the euro has also turned some heads, with the ECB stating that its appreciation could lead to further stimulus as exporters become less competitive.
AUD/EUR: technical analysis
Nevertheless, looking at the AUD/EUR pair, it is clear which of those currencies has been the most impressive performer over this period. With the pair rallying into a six-week high today, we are starting to see the pair turn lower. Looking at the descending trendline, this is a major hurdle to overcome for the pair. With that in mind, this crossroads could either bring a bullish breakout and end to the downtrend, or a bearish reversal.
On an intraday basis, AUD/EUR has dropped back below the 0.6155 level. This brings an end to the wider bullish trend that has been in play over the past fortnight. It may not neccesarilly mark the beginning of a complete reversal, which would take a break below the August low of 0.6039. However, this does look like a potential period of weakness as the pair turns away from this long-term descending trendline.
Start trading forex today
Find opportunity on the world’s most-traded – and most-volatile – financial market.
- Trade spreads from just 0.6 points on EUR/USD
- Analyse with clear, fast charts
- Speculate wherever you are with our intuitive mobile apps
See an FX opportunity?
Try a risk-free trade in your demo account, and see whether you’re onto something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See an FX opportunity?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from just 0.6 points on popular pairs
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See an FX opportunity?
Don’t miss your chance. Log in to take your position.
Related articles
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.