EURAUD has advanced considerably after it found support on the five-month low of 1.5515, achieved last Thursday, and ended the day below the rising trend line. However, the pair gained ground in the next couple of sessions, challenging the 20-day simple moving average near 1.5760.
Technically, the RSI remains in the negative zone, but is turning higher, while the MACD oscillator is strengthening its positive momentum above the trigger line and below the zero line. Both are confirming the recent upside run in the market.
Currently, the pair hovers marginally above the 23.6% Fibonacci retracement level of the upleg from 1.3625 to 1.6350, near 1.5705. In case of a significant leg above this area, the price could run towards the 1.5985 resistance, which holds near the 40-day SMA.
On the flipside, if the pair reverses back down and dives below the long-term ascending trend line, immediate support could come from the five-month low. Even lower, the 1.5425 could attract greater attention and any move lower could worsen the bearish outlook, opening the door towards the 38.2% Fibonacci of 1.5310.
To sum up, EURAUD hovers above the long-term uptrend line, which has been holding since September 2017, endorsing chances for more increases.
