The EURAUD currency pair has been moving in a large sideways range for years. This range is limited on the upside by 1.68 – 1.71 and on the downside by 1.60 – 1.58. Range traders, who trade medium-term positions (over a period of a few weeks and months), can be active here.
Our main scenario envisages the exchange rate remaining within the range described. After a renewed test of the upper resistance zone, we expect prices to fall to around 1.60 over the next few months. There should be another rebound to the north.
A breakout from the range can only be considered sustainable after a weekly closing price at the upper or lower end, and the main scenario is no longer valid. However, we currently see no technical or fundamental reasons for a trend movement in the currency pair.
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