EURAUD has posted gains in the previous two days after the significant decline it recorded since the beginning of June that threw the pair from the one-year high of 1.5226 to as low as 1.4626. In today’s trading the pair touched a one-week high of 1.4803 and currently trades close to the day’s open.
The RSI is currently hinting to a neutral short-term picture. The indicator recorded a rise in recent days but is flat at the moment and close to the 50 neutral-perceived level at 47.
The 23.6% Fibonacci retracement level (February 22 – June 1 upleg) at 1.4848 might constitute an important resistance mark. This level held significance in the recent past as well. Above this, the 1.49 handle could act a psychological barrier to upside movements in price.
If the price moves down, the 50-day moving average (MA) at 1.4743 could provide intra-day support. It should be noted that this point was briefly violated today. Further down, the 38.2% Fibonacci mark at 1.4613 might offer additional support.
Turning to the medium-term outlook, it remains bullish, albeit the fall since the start of June has been tilting it towards neutrality. The pair also recorded a bullish (golden) cross in mid-May when the 50-day MA moved above the 200-day MA. The price currently exceeds both MAs.
