Today, while analyzing the FOREX market, the EUR/AUD currency pair came into our view. For quite a long time, the pair is updating the highs and the medium term 1W TF moving average with 200 period is directed upwards. However, at the beginnig of the new year, the correction of the pair began, which led her to the support level of 1.5800 at 1D TF. After this the upward movement resumed. İt seems to us interesting, because there is a possibility to open UP position.
The factors that may affect the currency.
At 1H TF there was a rebound from the EMA200 (200 period exponential moving average). This is the same spot where the Fibo Level of 61.8% (1.5867) is situated. At the same time, the pair broke the short term EMA9 from bottom to top. The lines of the MACD indicator are approaching each other, awarning of a signal to the top.
Resume: Considering reversal nature of the signals, we think that it possible to open long positions in European currency. But on Thursday, January 24th, important macroeconomic news will also need to be taken into consideration.
The fundamental factors that can affect to curreny:
The main news on Thursday is the meeting of the European Central Bank, where a decision will be made regarding the interest rate. ECB’s comments will be particularly important for participants who are trading on FOREX.