How to Trade the EURAUD Currency Pair

Jitanchandra Solanki
8 Min read

Did you know that the European Union (EU) is Australia's second-biggest trading partner? Trade in goods between the two countries has risen to nearly €50 billion, while trade in services has risen to nearly €30 billion.  

International trade has a huge influence on the buying and selling of the EURAUD exchange rate. Learn how to trade the currency below and the tools used to perform a EURAUD analysis for buy or sell decisions.

How does the EURAUD Exchange Rate Work? 

The euro vs Australian dollar (EURAUD) exchange shows how many Australian dollars (AUD) it will take to purchase 1 euro (EUR). If the exchange rate read 1.5500, this means 1 EUR will buy 1.5500 Australian dollars.  

Currency prices move up and down 24 hours a day, 5 days a week. Currency traders try to speculate on the direction of prices using a variety of different tools such as technical analysis, fundamental analysis, sentiment and correlation.  

Financial products such as contracts for difference (CFDs) allow forex traders to speculate on the price direction of currency pairs such as EURAUD. These products allow traders to speculate on rising and falling prices.  

You can learn more about CFDs and the different risks and benefits of them in this CFD Trading Guide. You can also register for your FREE spot on the Forex 101 course below to improve your trading knowledge and skillset.

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EURAUD Forecast & Analysis

One of the biggest trends in the EURAUD exchange rate developed in the 2008 financial recession. From reaching a high of 2.1126 in late 2008, the currency pair sank to 1.1603 by the middle of 2012. For much of 2014 to 2022, the price action has been contained between two significant support and resistance levels ~1.6597 and ~1.3827.   

The price did try to break through the upper level of the range in February 2020. After a surge higher for several months, the price came back inside of the trading range and has moved lower since as highlighted in the chart below taken from the MetaTrader 5 trading platform provided by Admirals.

Source: Admirals MetaTrader 5, EURAUD, Monthly - Data range: from 1 Jan 2007 to 28 Oct 2022. Performed on 28 Oct 2022. Please note: Past performance is not a reliable indicator of future performance. 

However, drilling down the lower timeframes and there have been strong trends developing in between the longer-term trading range. For example, the daily chart below highlights the pockets have trends that have developed over the past several years.

Source: Admirals MetaTrader 5, EURAUD, Daily - Data range: from 14 May 2021 to 28 Oct 2022. Performed on 28 Oct 2022. Please note: Past performance is not a reliable indicator of future performance. 

EURAUD can often exhibit strong trend-like characteristics, as well as range-based periods of time as well. This makes it an interesting currency pair for forex traders and they can implement different types of trading strategies on this currency pair.  

There are a variety of influences that can affect the price of EURAUD which we will explore in the next section.  

You can stay up to date with the latest market trends by tuning into the FREE Admirals live trading webinars hosted by experienced traders, multiple times a week.

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EURAUD Investing Analytical Techniques

When performing a EURAUD analysis or forecast, there are a variety of analytical tools to do so. Popular types of analysis techniques include technical analysis and fundamental analysis.  

With the Admirals MetaTrader Supreme Edition, users can also access sentiment and correlation indicators for EURAUD and many other currencies, indices and commodities. 

EURAUD Technical Analysis 

Technical analysis is the method of studying price behaviour. This can include using chart patterns, candlestick patterns and forex indicators. However, it does take some time to master technical analysis of the currency market so it’s wise to start with a demo trading account first.

The Technical Insight indicator is also available from the Admirals premium analytics section. This provides a list of technical analysis events happening on thousands of different markets. For example, below is a search for EURAUD in the premium analytics section.

Source: Admirals Premium Analytics, 28 October 2022 

This indicator shows you the different short-term to long-term technical events taking place on a market. It provides details of what is happening and the indicator being used. Clicking on a technical event allows you to read a more detailed description of what is happening.  

This is a great way to learn more about technical analysis of the financial markets and could also aid in your own trading decisions.

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EURAUD Fundamental Analysis 

Fundamental analysis involves analysing economic data such as inflation numbers, employment figures, interest rates and more. These data points are watched by central bank members who use them to learn more about the health of the economy and to adjust their monetary policy.  

As central banks increase and decrease interest rates to keep inflation in check (as they are mandated to do so), it can have a huge effect on the flows of a currency.  

For example, both the European Central Bank (ECB) and the Reserve Bank of Australia (RBA) started to increase interest rates in 2022. However, the RBA increased rates several times by 0.25% which was much more modest than the ECB which increased interest rates several times by 0.75%.  

This led to a surge higher in the EURAUD exchange rate as investors were able to receive a higher rate of return on their capital when parked in the EU. Interest rates have a huge impact on the overall direction of a currency pair.

How to Trade EURAUD 

Currency pairs are volatile in nature and there are a range of different ways to analyse the currency market. One of the best ways to get started trading currencies is to use a demo trading account.  

This type of account allows you to make EURAUD buy or sell decisions (and many other asset classes), in a virtual environment. It’s a great way to test your tools and ideas until you are confident to go live.

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FAQs on Trading EURAUD

 

What is the best time to trade EURAUD?

You can trade EURAUD and other currency pairs 24 hours a day, 5 days a week. However, most of the EURAUD volatility is likely to happen in the European and Asia session.

 

What pairs correlate with EURAUD?

EURAUD is classed as a synthetic cross rate as the exchange rate is derived from the price of EURUSD and AUDUSD. You can download the Admirals MetaTrader Supreme Edition plugin for free which provides access to a currency correlation matrix.

 

About Admirals 

Admirals is a multi-award winning, globally regulated Forex and CFD broker, offering trading on over 8,000 financial instruments via the world's most popular trading platforms: MetaTrader 4 and MetaTrader 5. Start trading today! 

INFORMATION ABOUT ANALYTICAL MATERIALS:   

  • The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admirals’ investment firms operating under the Admirals trademark (hereinafter “Admirals”) Before making any investment decisions please pay close attention to the following:   
  • This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.    
  • Any investment decision is made by each client alone whereas Admirals shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content. 
  • With a view to protecting the interests of our clients and the objectivity of the Analysis, Admirals has established relevant internal procedures for the prevention and management of conflicts of interest. 
  • The Analysis is prepared by an independent analyst, Jitanchandra Solanki (analyst), (hereinafter “Author”) based on their personal estimations.    
  • Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admirals does not guarantee the accuracy or completeness of any information contained within the Analysis.    
  • Any kind of past or modelled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admirals for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed. 
  • Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand the risks involved
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