General presentation and functioning of EUR/AUD :
As the name suggests, the EUR/AUD represents the parity between the euro and the Australian dollar. More clearly, this means that this cross gives the exchange rate of the euro to Australian dollars and therefore expresses the value of one euro in Australian dollars.
The EUR/AUD is of course used in international trade between Australia and the Eurozone but is also used as a speculative asset in the foreign exchange market.
The exchange rate between the euro and the Australian dollar is quoted on the foreign exchange market and is highly volatile during the opening hours of the European and Australian financial markets, i.e. from 3.30 pm to 10 pm (Paris time) and from 1 am to 7 am (Paris time).
Between 4:30 pm and 10 pm, volatility is high because this period corresponds to the first hours of trading on the American stock market and the end of the European session. Investors are therefore numerous on the market and trading volumes are high.
As for the Australian stock exchange, based in Sydney, it is open during part of the French night like the Tokyo Stock Exchange. The trading volumes on the Australian dollar, the yen or the New Zealand dollar are indeed very high.
Of course, in the foreign exchange market, it is possible to take positions on this currency pair as well as on other currencies at any time, not only during the opening hours of these financial markets.
As we will see later, the price of this EUR/AUD currency pair is a function of supply and demand and therefore can be influenced by certain external factors or market psychology.
How to perform a technical analysis of the Euro - Australian Dollar :
First, we will focus here on an analysis dear to investors on the Forex, namely the technical analysis. This analysis allows us to study the price of this value and its evolution in the more or less long term in order to predict as best as possible its future variations.
Technical analysis uses the charts of this parity with different time units depending on the strategy adopted and the trading horizon targeted by it. We will therefore favour here the most innovative charts offering a great possibility of customization.
Among the most frequently used indicators for EUR/AUD trading are moving averages and other popular indicators.
Moving averages are used in an attempt to determine the direction of the trend of the Australian Euro Dollar. To do this, analysts study the slope of the moving average which shows more or less responsiveness to the closing price above or below this indicator.
Other indicators that are frequently used in Forex trading and are therefore also suitable for trading the Euro - Australian Dollar include strategic reversal or acceleration points such as pivot points, support levels and resistance levels.
Other technical indicators are also worth looking at, such as Bollinger Bands, Fibonacci lines, MACD and RSI. They help determine the volatility of a market, the strength and direction of a trend and other important elements.