EUR/AUD is torn by very different forces and battles 1.50. What should we watch out for?
Here is their view, courtesy of eFXdata:
NAB discusses EUR/AUD technical outlook and flags a high probability top in the making with initial target at 1.5200/50 ahead of 1.4900/50.
“EUR/AUD not only produced a prominent LT topping pattern in 2018, but simultaneously broke one-year uptrend support. This bearish reversal has the added benefit of occurring at similar levels that caused major downside reversals in 2015 and 2016. The recent negative LT momentum shift from extreme overbought levels is icing on the cake. This is a high probability bearish MT/LT set up,” NAB notes.
“Initial target at 1.5200/50 will likely give way to a test of 1.4900/50 in the coming weeks to months,” NAB adds.
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