12 Feb 2015
EUR/AUD: Further range trading expected - Westpac
FXStreet (Bali) - According to David Coloretti, FX Analyst at Westpac, to expect further EUR/AUD range trading in the coming weeks, with Bollinger bands as a guide to range extremes (1.3984/1.5107).
Key Quotes
"EURAUD has been in a converging range since 2013. Price action in 2015 has not provided any significant clues as to which way this range will ultimately break out."
"The January decline bottomed out at the lower weekly Bollinger band and produced a bullish 3 week candle pattern. The subsequent rally was short-lived and produced a bearish candle the following week (last week)."
"With price back in the middle of its converging range (triangle) and momentum losing its directional bias, we are forced to expect further range trading in the coming weeks, with Bollinger bands as a guide to range extremes (1.3984/1.5107)."
Key Quotes
"EURAUD has been in a converging range since 2013. Price action in 2015 has not provided any significant clues as to which way this range will ultimately break out."
"The January decline bottomed out at the lower weekly Bollinger band and produced a bullish 3 week candle pattern. The subsequent rally was short-lived and produced a bearish candle the following week (last week)."
"With price back in the middle of its converging range (triangle) and momentum losing its directional bias, we are forced to expect further range trading in the coming weeks, with Bollinger bands as a guide to range extremes (1.3984/1.5107)."