Home AUDUSD, EURUSD and EURAUD TA – October 26 2016
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AUDUSD, EURUSD and EURAUD TA – October 26 2016

AUDUSD Daily Analysis

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AUDUSD (0.7681): The Australian dollar advanced its gains yesterday and is seen maintaining the bullish momentum after the quarterly inflation report that was released today. However, the 4-hour chart shows the AUDUSD moving in a widening wedge pattern with price closing above the 4-hour resistance zone of 0.7682 – 0.7660. We could expect the price to remain consolidated near the current levels, but the upside momentum is seen weakening. A close below the resistance zone’s low of 0.7660 could signal near term declines towards 0.7580. Watch for a median line failure plotted within the broadening wedge pattern for early clues as AUDUSD looks to post declines if price fails to hold up above 0.7682.

EURUSD Daily Analysis

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EURUSD (1.0888): EURUSD dipped to lows of 1.0850 yesterday and closed modestly bullish and in the process formed a doji outside the bar. A follow through to the upside from here could mark the start of price correction to the upside subject to 1.0900 minor resistance which needs to be cleared. On the 4-hour chart, the Stochastics has moved up strongly, forming a higher high against the lower high in price which indicates a near term sideways price action between 1.0900 and 1.0850. The bias to the upside can be seen strengthening only on a close above 1.0900, while 1.0850 remains in focus but the downside could be limited for now.

EURAUD Daily Analysis

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EURAUD (1.4175): EURAUD broke down below the previous low at 1.4200 yesterday, but the 4-hour Stochastics is showing a bullish divergence at the current level. A close above 1.4200 could signal near term upside in prices. The short-term corrective move towards 1.4560 marks the retest of the weekly chart’s descending triangle pattern as resistance could be established at 1.4560.

John Benjamin

John Benjamin

John is a market analyst for Orbex Ltd. and is a forex and equities trader having been involved in trading since late 2009. John makes use of a mix of technical and fundamental analysis and inter-market relationships. The analysis present here is a mix of intra-day analysis while considering the long term outlook of the markets as well. For any comments or questions, John can be reached at [email protected]