EUR/AUD rushes above 1.4500 on weaker Aussie

FXStreet (Moscow) - EUR/AUD smashed the resistance of 1.4500 and set the intraday high at 1.4527 on the back of Aussie sell-off across the board. The bullish momentum has slowed down. but the cross continues to climb up aiming at the next target at 1.4544 (Tuesday’s high).

Bulls do their best

EUR/AUD bulls attempted to get the cross above the bespoke resistance of 1.4500 and even managed to reach 1.4544 on Tuesday, but the movement proved to be unsustainable as the cross finished the day at 1.4477 (even lower than it had opened). The thing is that EUR/AUD is affected by Aussie dynamics in the morning and then, during European hours, falls under EUR influence. Today we’ve seen massive Aussie sell-off, caused mostly by technical factors and speculative activity, which pushed the cross higher. Whether it manages to keep morning gains will depend on EUR sentiments later during the day. From the technical point of view, yesterday’s high of 1.4544 is of great importance for short-term players. Once it is broken, the upside may accelerate to 1.4570. The support is seen at 1.4500.

What price levels and patterns have to be considered?

Spot is presently trading at 1.4521, and next resistance can be seen at 1.4531 (Daily Classic R1), 1.4531 (Daily High), 1.4550 (Yesterday's High), 1.4556 (Weekly Classic R1) and 1.4561 (Monthly High).

Support below can be found at 1.4504 (Hourly 200 SMA), 1.4500 (Daily 20 SMA), 1.4499 (Weekly High), 1.4498 (Daily Classic PP) and 1.4498 (Hourly 100 SMA).

Regarding candlestick formations, we can see Shooting Star formation on the 1-hour .