Markets absorb the data – the RBA governor’s statement was somewhat mixed in tone. HotForex shares their 5 September EURAUD technical analysis.
5 September, HotForex – The antipodean central bank left the cash rate unchanged at 1.50% for the 13th straight month. The governor’s statement was somewhat mixed in tone. The main takeaways were dovish leaning, including an acknowledgement of signs of slowing in the property market and a jawboning about the high exchange rate. This would lead to slower economic growth.
5 September EURAUD technical analysis
EURAUD dove to a 1.4902 low on the RBA policy announcement and statement. The pair is traded below the 1.5000 level for a third consecutive day, while it is consolidated on the 20-Day MA, since yesterday. In the 4-hour chart, EURAUD fails to break above the 20-period MA, and hence it remained on the lower Bollinger Bands pattern since August 31.
Therefore a SHORT intraday position was taken, which was triggered by a Hanging Man Candle, noticed in the morning. Meanwhile, the 20-period MA crossed yesterday the 50-period MA, indicating the weakness of the pair is likely to continue. The RSI id at 40 sloping towards oversold territory.
The entry was taken at 1.4921, with Targets at 1.4860 and 1.4820, which are the 200-period SMA and the 50.0 Fibonacci level respectively. Support is at near 50-period MA, i.e. 1.5000.D
The European calendar has the final reading of the Eurozone services PMI in a while, which expected to stay unchanged from Q1 and therefore EU growth expected to continue.
This article about 5 September EURAUD technical analysis was written by Andria Pichidi, Market Analyst at HotForex. The provided article is a general marketing communication for information purposes only. It does not constitute an independent investment research. Nothing in this communication contains an investment advice or an investment recommendation. It also does not contain a solicitation for the purpose of buying or selling of any financial instrument.
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