News
7x24
Quotes
Economic Calendar
Video
Data
- Names
- Latest
- Prev.
Potential Bottom Could Incentivize Bulls to Accumulate at Multi-Month Lows
Forex
Economic
Summary:
This structural resilience is increasingly attracting buyers, as the "buy the dip" opportunity at these multi-month lows becomes technically compelling.
Buy
CLOSEDEURAUD
End Time
1.67998
Entry Price
1.71900
TP
1.66800
SL
1.66471 -0.00062 -0.04%
1198
Points
Loss
1.66800
SL
1.66800
CLOSING
1.67998
Entry Price
1.71900
TP
The Reserve Bank of Australia (RBA) opted to raise the official cash rate by 25 basis points to 3.85% on February 3, a move that perfectly synchronized with broad market consensus. Alongside this tightening, the central bank revised its short-term economic projections upward; growth and inflation are now forecasted at 2.1% and 4.2%, respectively, by June 2026—a notable increase from prior estimates of 1.9% and 3.7%. These updated figures are grounded in the hawkish assumption that the cash rate will likely reach 4.2% by the end of 2026.
Despite this proactive stance, consumer sentiment metrics continue to exhibit significant fragility. The Westpac-Melbourne Institute Sentiment Index retreated for the third consecutive month, underscoring the persistent pressure high interest rates are exerting on household discretionary spending. This trend bolsters the argument for a potential pause in the RBA’s tightening cycle during the upcoming March meeting. Meanwhile, the latest NAB Business Survey provided conflicting signals; while business confidence edged slightly higher to +3, overall business conditions moderated to +7. Trading and profitability indicators showed a loss of momentum, though future orders recovered to +2, hinting at a gradual stabilization in demand expectations. Notably, while capacity utilization dipped to 82.9%, it remains 1.5 percentage points above its long-term average. It is critical to note that this survey was conducted prior to the recent rate hike, meaning the full impact of the RBA's latest decision is not yet reflected in the data.
Across the globe, the European Central Bank (ECB) recently maintained its benchmark interest rates during the February policy meeting, aligning with market expectations. However, the accompanying discourse possessed a markedly more hawkish tone, as the governing council emphasized the Eurozone’s underlying economic resilience. President Christine Lagarde downplayed recent inflationary cooling and dismissed concerns regarding the Euro’s appreciation, noting that the currency remains well within its historical range. Eurozone GDP is currently projected to expand between 0.2% and 0.3% quarter-over-quarter, supported by robust internal demand and a resilient service sector, even as manufacturing continues to face structural headwinds.
Technical Analysis
From a technical perspective, EURAUD is once again testing the critical 1.6793 support level, a floor that has consistently rejected bearish attempts to break lower over recent sessions. This structural resilience is increasingly attracting buyers, as the "buy the dip" opportunity at these multi-month lows becomes technically compelling.
On the 4-hour (H4) chart, the 100 and 200-period Moving Averages (MAs) are situated at 1.7048 and 1.7252, respectively. These averages are currently tracking the broader bearish trend and would act as primary dynamic resistance zones in the event of a reversal. Our primary upside objective for a corrective move is the 0.618 Fibonacci retracement level at 1.7194, which is nestled strategically between the two moving averages. A decisive H4 candle close above the 9-period EMA would serve as the first confirmation that bulls have successfully regained control of the short-term narrative.
Our momentum analysis via the MACD provides a strong precursor for a potential change in trend. While price action has printed flat or marginally lower lows, both the MACD histogram and signal lines are making higher lows, creating a classic bullish divergence. This setup is often a reliable indicator of an impending technical bounce or trend reversal.
Additionally, the RSI has climbed to the 40 level, successfully recovering from deeply oversold territory at 18. This indicates significant room for upward expansion before the pair encounters overbought conditions. Conversely, traders should remain vigilant; a definitive break below the 1.6800 psychological threshold would invalidate this bottoming thesis and open the door for a deeper bearish extension.
Trading Recommendations
Trading direction: Buy
Entry price: 1.6800
Target price: 1.7190
Stop loss: 1.6680
Validity: Feb 20, 2026 15:00:00
Risk Warnings and Investment Disclaimers
You understand and acknowledge that there is a high degree of risk involved in trading with strategies. Following any strategies or investment methodologies is the potential for loss. The content on the site is being provided by our contributors and analysts for information purposes only. You alone are solely responsible for determining whether any trading assets, or securities, or strategy, or any other product is suitable for you based on your investment objectives and financial situation.
Quick Access to 7x24
Quick Access to More Editor-selected Real-time News
Exclusive video for free
FastBull project team is dedicated to create exclusive videos
Real-time Quotes
View more faster market quotes
More comprehensive macro data and economic indicators
Members have access to entire historical data, guests can only view the last 4 years
Member-only Database
Comprehensive forex, commodity, and equity market data
English
English
العربية
繁體中文
简体中文
Bahasa Melayu
Bahasa Indonesia
ภาษาไทย
Tiếng Việt
Copyright © 2026 FastBull Ltd
Home News Columns 7x24 Economic Calendar Quotes Video Data WarehouseAnalysis AI Signal Pro User Agreement Privacy Policy About Us
Risk Disclosure
The risk of loss in trading financial assets such as stocks, FX, commodities, futures, bonds, ETFs or crypto can be substantial. You may sustain a total loss of the funds that you deposit with your broker. Therefore, you should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources.
No consideration to invest should be made without thoroughly conduct your own due diligence, or consult with your financial advisors. Our web content might not suit you, since we have not known your financial condition and investment needs. It is possible that our financial information might have latency or contains inaccuracy, so you should be fully responsible for any of your transactions and investment decisions. The company will not be responsible for your capital lost.
Without getting the permission from the website, you are not allow to copy the website graphics, texts, or trade marks. Intellectual property rights in the content or data incorporated into this website belongs to its providers and exchange merchants.