EUR/AUD Currency Pair Forecast
Explanation to Bollinger's Bands
Bollinger Bands was created by John Bollinger in the early 1980s, its purpose is to define price action relative to the assets highs and lows. This technical indicator is used to identify buy and sell signals and has proven very well in doing so.
Bollinger Bands consist of a set of three curves drawn in relation to securities prices. The middle band is a measure of the intermediate-term trend, usually a simple moving average, that serves as the base for the upper and lower bands. The interval between the upper and lower bands and the middle band is determined by volatility, typically the standard deviation of the same data that were used for the average. StockInvest.us uses Bollingers suggested 20 day average.
Middle Bollinger Band = 20-period simple moving average
Upper Bollinger Band = Middle Bollinger Band + 2 * 20-period standard deviation
Lower Bollinger Band = Middle Bollinger Band - 2 * 20-period standard deviation
BandWidth defines the current width of the band.
%b defines the current position within the band.
BandWidth = (Upper Bollinger Band - Lower Bollinger Band) / Middle Bollinger Band
%b = (Last - Lower Bollinger Band) / (Upper Bollinger Band - Lower Bollinger Band)
Live Samples:
![Bollinger Bottleneck Buy Pattern 1](https://stockinvest.us/assets/img/legend/boll_tight.gif?v=a96687fd7cb748be5332adf66b27f34ec1accc21)
![Bollinger Bottleneck Buy Pattern 2](https://stockinvest.us/assets/img/legend/boll_tight2.gif?v=a96687fd7cb748be5332adf66b27f34ec1accc21)
![Bollinger Bottleneck Sell Pattern](https://stockinvest.us/assets/img/legend/boll_tight3.gif?v=a96687fd7cb748be5332adf66b27f34ec1accc21)
Bottlenecks in bandwidth indicate an upcoming change. Break up through the moving average line or continuous movements above the moving average line indicate a break up, and vice versa.
Source: http://www.bollingerbands.com
EUR/AUD currency pair upgraded from Sell Candidate to Hold/Accumulate after Tuesday trading session.
(Updated on Jun 18, 2024)
The EUR/AUD currency pair price fell by -0.284% on the last day (Tuesday, 18th Jun 2024) from A$1.62 to A$1.61. During the last trading day the currency pair fluctuated 0.718% from a day low at A$1.61 to a day high of A$1.62. The price has fallen in 6 of the last 10 days and is down by -1.37% for this period. Volume has increased on the last day by 304 thousand shares but on falling prices. This may be an early warning and the risk will be increased slightly over the next couple of days. In total, 304 thousand shares were bought and sold for approximately A$490.51 thousand.
The currency pair lies in the lower of a narrow and falling trend in the short term, and this may normally pose a very good buying opportunity. If the lower trend floor at A$1.61 is broken, it will firstly indicate a stronger fall rate. Given the current short-term trend, the currency pair is expected to fall -2.13% during the next 3 months and, with a 90% probability hold a price between A$1.58 and A$1.60 at the end of this 3-month period. Do note, that if the stock price manages to stay at current levels or higher, our prediction target will start to change positively over the next few days as the conditions for the current predictions will be broken.
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EURAUD Signals & Forecast
There are few to no technical positive signals at the moment. The EUR/AUD currency pair holds sell signals from both short and long-term Moving Averages giving a more negative forecast for the stock. Also, there is a general sell signal from the relation between the two signals where the long-term average is above the short-term average. On corrections up, there will be some resistance from the lines at A$1.62 and A$1.63. A break-up above any of these levels will issue buy signals. A sell signal was issued from a pivot top point on Friday, June 07, 2024, and so far it has fallen -1.64%. Further fall is indicated until a new bottom pivot has been found. Furthermore, there is currently a sell signal from the 3 month Moving Average Convergence Divergence (MACD). EUR/AUD gained volume on the last day, but on falling prices. In technical terms, this is called divergence and may be an early warning. In some cases, increasing volume on falling prices may be considered positive, but that is mainly in typical "sell-offs".
Support, Risk & Stop-loss for EUR/AUD currency pair
There is no support from accumulated volume below today's level and given the right condition the currency pair may perform very badly in the next couple of days.
In general the currency pair tends to have very controlled movements and with good liquidity the risk is considered very low in this stock. During the last day, the currency pair moved A$0.0116 between high and low, or 0.718%. For the last week the currency pair has had daily average volatility of 0.416%.
Our recommended stop-loss: A$1.56 (-3.50%) (This currency pair has low daily movements and this gives low risk. There is a sell signal from a pivot top found 23 days ago.)
Trading Expectations (EURAUD) For The Upcoming Trading Day Of Thursday 20th
For the upcoming trading day on Thursday, 20th we expect EUR/AUD to open at A$1.62, and during the day (based on 14 day Average True Range), to move between A$1.61 and A$1.62, which gives a possible trading interval of +/-A$0.0065 (+/-0.40%) up or down from last closing price. If EUR/AUD takes out the full calculated possible swing range there will be an estimated 0.81% move between the lowest and the highest trading price during the day.
With no support below and resistance from accumulated volume @ A$1.62, some A$0.0046 (0.28%) from the current price of A$1.61, our system finds the risk reward not very attractive.
Is EUR/AUD currency pair A Buy?
EUR/AUD holds several negative signals and this should be a sell candidate, but due to the general chance for a turnaround situation it should be considered as a hold candidate (hold or accumulate) in this position whilst awaiting further development. We have upgraded our analysis conclusion for this currency pair since the last evaluation from a Sell to a Hold/Accumulate candidate.
Current score: 0.000 Hold/Accumulate Upgraded
Zero in score indicates that our system is expecting high volatility and risk for the following trading day. Given the latest developments, we cannot determine the next direction as it may go both ways.
Predicted Opening Price for EUR/AUD of Thursday, June 20, 2024
Fair opening price June 20, 2024 | Current price |
---|---|
A$1.62 ( 0.222%) | A$1.61 |
The predicted opening price is based on yesterday's movements between high, low, and closing price.
Trading levels for EURAUD
Fibonacci Support & Resistance Levels
Level | Price | |
---|---|---|
R3 | 1.63 | 0.94% |
R2 | 1.62 | 0.666% |
R1 | 1.62 | 0.497% |
Price | 1.61 | |
S1 | 1.61 | -0.0519% |
S2 | 1.61 | -0.221% |
S3 | 1.61 | -0.496% |
Accumulated Volume Support & Resistance Levels
Level | Price | |
---|---|---|
R3 | 1.66 | 2.84% |
R2 | 1.62 | 0.292% |
R1 | 1.62 | 0.284% |
Price | 1.61 | |
S1 | 0 | - |
S2 | 0 | - |
S3 | 0 | - |
FAQ
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