HomeForex MarketForeign exchange Watchlist: Can EUR/AUD Lengthen Its Uptrend?

Foreign exchange Watchlist: Can EUR/AUD Lengthen Its Uptrend?

EUR/AUD has pulled again to 1.4900 after hitting highs close to 1.5300 in Could.

Can the pair make new Q2 2022 highs within the subsequent few days?

Right here’s the chart that I’m taking a look at at the moment:

EUR/AUD 4-hour Foreign exchange Chart

EUR/AUD has been making greater highs and better lows since April when the pair discovered assist on the 1.4350 psychological deal with.

EUR is now on a “greater low” towards AUD because it consolidates in a potential Inverse Head and Shoulders sample across the backside of EUR/AUD’s ascending channel close to 1.4800.

Can EUR prolong its uptrend towards AUD?

Techincals are a bit iffy on the 4-hour time-frame with Stochastic approaching the overbought area whereas the 100 SMA narrows its hole with the 200 SMA.

Perhaps this week’s occasions would possibly assist merchants discover EUR/AUD’s subsequent course.

The Reserve Financial institution of Australia (RBA) is broadly anticipated to lift its rates of interest at the moment and, whereas the transfer is usually priced in, a bigger-than-expected charge hike or hints of additional tightening would possibly convey extra bulls to AUD’s yard.

A hawkish RBA occasion might drag EUR/AUD again right down to the 1.4800 June lows. It would pull EUR/AUD under its channel assist!

There’s the European Central Financial institution (ECB) occasion to think about although.

Phrase round is that we’ll get a affirmation of a July charge hike. If EUR bulls are fortunate, we’ll hear hints of a number of charge hikes or a hawkish charge hike schedule from ECB President Lagarde and her workforce.

If merchants select to deal with ECB’s hawkishness, then EUR/AUD might soar from its present ranges and prolong its 4-hour uptrend above the 100 and 200 SMAs.

What do you assume?

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