Forex: EUR/AUD approaches value-area for buyers

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FXstreet.com (Barcelona) - EUR/AUD continues in corrective mode after the impulsive 2-day rally from Sept 14-17 failed to hold past the big figure 1.2500. Since then, a 4-day run lower has taken the spot rate down below a long-held ascending trendline from record lows, and also breaking the 50% fib retrac from the latest 1.2250-1.2550 daily rally.

The real battle between buyers and sellers looms ahead, with the next key technical support at 1.2385 at a stone's throw. A break below may see price slide further to face next hurdle at 1.2370 - Sept 13 high & 61.8% fib retrac from mentioned daily run - ahead of an extra 30 pips decline to activate new challengers' orders at 1.2340 - Sept 12 intraday highs - .

On the flip side, price recovery off key support sees a 50+pips bounce opportunity until buyers are really faced with selling interest around 1.2435/40 - Sept 19 intraday lows - ahead of 1.2470 - Sept 19 swing low - . Buyers should take notice they will see also dynamic resistance in the form of a retest of broken ascending trendline.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Forex and Currencies

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