EUR/AUD Daily Chart 10:48AM EDT 7/5/2012
The EUR/AUD started to slide in May after it briefly cracked the 1.30 handle after a rally from the then-record low of 1.2130. This slide has been very sharp, and accelerated today after the ECB decision to cut the benchmark rate to a historic low of 0.75% and reduced the deposit rate to 0%.
The daily chart shows the market plunging into new territory below 1.2130, with 1.20 the next likely psychological handle to find some support.
As far as a measured move, the weekly chart shows that taking the swing from 1.4250 (Aug. 2011 high) to 1.2130, and projecting the move from the 1.3020 high in May, targets 1.09.
As far as momentum is concerned, the daily chart is very bearish, and may start to become a bit oversold. The weekly chart shows persistent bearish momentum in the long-term with the RSI falling back below 40 after holding below 60.
EUR/AUD Weekly Chart 10:53AM EDT 7/5/2012
Fan Yang CMT is a forex trader, analyst, educator and Chief Technical Strategist for FXTimes – provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
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