Forex EUR/AUD stalls below 8-day highs at 1.2400

FXstreet.com (Barcelona) - Following overnight ECB meeting and yesterday's massive moves in Yen, EUR/AUD has printed fresh 8-day highs at 1.2421, on the back of Euro strength, building a “Possible double-bottom on the 4-hour chart,” notes FXWW founder Sean Lee, what “gives a good technical entry for bulls and with metal prices falling and EZ sentiment improving, this could be a useful trade,” the analyst say.

As for ECB Draghi, “He avoided giving a direct answer on additional easing,” noted BK Asset Management managing director Kathy Lien, “and investors interpreted this to mean that a rate cut won't come easy,” she suggests. EUR/USD jumped from a fresh 4-month low around 1.2745, and potential double low reversal pattern as well, to fresh 8-day highs above the 1.29 handle, while AUD/USD fell to double weekly low at 1.0385 before stabilizing around current 1.0435 on the back of weaker commodities.

Immediate resistance to the upside for EUR/AUD shows at recent 8-day highs/March 18 lows 1.2426, followed by March 14 lows at 1.2467, and March 19/20/25 highs at 1.2498. To the downside, closest support lies at current levels as March 19 lows 1.2390, followed by March 21/22 lows/Monday's highs 1.2343, and Monday's/March 24 lows at 1.2276.