EUR/AUD (Euro - Australian dollar): technical and fundamental features of the trading pair

The EUR/AUD currency pair displays the ratio of the value of the euro to the Australian dollar.

In this case, the single currency acts as the base currency, while the second currency acts as the quoted one. Thus, the value of one euro is indicated in the equivalent of the dollar of the Australian state.

EUR/AUD belongs to the group of cross-rates, but this does not prevent it from being widely popular among Forex traders and binary options dealers. It is characterized by a low level of volatility and acts as a non-technical pair.

The value of each currency in the EUR/AUD pair

The euro is the single currency of the European Union, the official currency of 18 countries and has national status in 9 countries. Introduced into non-cash circulation from January 1, 1999, and into cash - from January 1, 2002 in the form of coins and banknotes. The ESCB controls the currency.

In 2008, a record euro exchange rate against the US dollar was recorded - 1.6038, and the minimum value was characterized by 1.24 in different time periods.

The Euro Index is a special financial and economic indicator that reflects the fluctuations of the single currency in the G5 basket, consisting of the US dollar, Swiss franc, Japanese yen, British pound and Swedish krona.

The Australian dollar is the official currency of the Commonwealth of Australia. It ranks sixth in the ranking of the world's most traded currencies, and it also accounts for about 5 percent of all foreign exchange transactions.

It is popular due to the high interest rate in Australia, the relative freedom of the foreign exchange market from government pressure, as well as the stability of the economic and political regime in the country.

The high level of yield of the Australian dollar makes it attractive for trading on the difference in interest rates - the carry trade trading mode. The minimum exchange rate against the US dollar was recorded in the spring of 2001 - 0.4775, and the maximum at around 1.0650 - in 2011.

Pricing features and market analysis

The ratio of the euro to the Australian dollar is the currencies of two different states located in almost different regions of our planet.

The main factor that affects the state of quotes is the difference in the value of interest rates between the European continent and Australia, it is also important to pay attention to the general trend of the international market, given the cost of raw materials and basic consumer products.

The EUR/AUD currency pair is a non-technical, cross-pair in the financial market due to the pegging of both currencies to the value of the US dollar. To make predictions, you must first analyze the pairs EUR/USD and AUD/USD, and then draw a picture of the target asset.

The highest correlation is observed with such assets as “Euro Yen","Dollar-Yen”, and “Pound-Yen”. However, the relationship is very dynamic, since the trend of the chart changes when moving to different time intervals.

It is recommended not to use static indicators when analyzing trading asset data.

If we talk about the market analysis of EUR / AUD, then you can focus on fundamental factors in order to determine the general mood of the asset in the market. In the event of problems on the European continent, investors will work with the euro with less confidence, and the dollar-Australian exchange rate is affected by gold mining volumes.

How to trade the EUR/AUD currency pair?

This is a fairly popular asset for conducting transactions not only in the Forex market, but in the binary options sector. FROM this broker you can earn up to 85-90 percent on transactions and effectively increase your profits. According to experts, in the summer of 2019 volatility EUR/AUD almost halved to 44 points daily.

Despite the fact that the currency pair reacts to the statements of government representatives, news events and economic indicators, the movement of the euro and Australian dollar indices remains the main pricing factor. This, in turn, affects the decisions of traders, as well as their activity and conclusion of transactions.

If the movement of the indices is multidirectional, then a trend will form. In the case of a unidirectional index movement, the market will be in a flat zone.
Below are the charts for different conditions of the index movement - the quotes of the currency pair behave accordingly.

In addition, the rate can be affected by the levels of accumulation of orders. market makers - there is a movement of the graph from one level to another. At the same time, strong and secondary levels are clearly visible.

All trading trends for the EUR/AUD currency pair are divided into the following:

• Long-term - definition on a two-day, weekly or monthly chart. A change in trend is indicated by a classic reversal pattern (e.g. Spike, Cup with Handle, Head and shoulders), divergences can be observed;
• Medium-term - definition on the 8-hour chart. There is movement from one level of market maker congestion to the next, and false breakouts or bounces may occur.

The trend direction may be determined by financial and economic news in the EU region and Australia. The policies of both states are radically different, which makes it difficult to conduct fundamental analysis and make forecasts for the asset rate.

If the macroeconomic statistics for Europe focuses on the data of the industrial sector, then the situation of the Australian market depends on the level of agriculture and natural resources.

In the Pacific and European sessions, the movement of the pair is characterized by increased volatility, while in the American session it slows down and may even go sideways.

The peculiarity of EUR/AUD is that it is unpredictable in its fluctuations in different directions, which is attractive for experienced traders and scalpers.

With a broker FinmaxFX your trading on a currency pair will always be profitable and successful, you can take advantage of cooperation with the company and expand your horizons of financial trading.

EUR/AUD pair chart

A live chart for the EURAUD currency pair is an ideal solution for those who do not want to install MT4 for analysis.

Technical analysis