EURAUD advanced considerably over the last period following the bounce off the 20-period simple moving average (SMA). The stochastic oscillator is ready to create a bullish crossover within its %K and %D lines near the overbought zone, while the MACD oscillator is extending its movement above the trigger line in the negative territory.
A jump above the Ichimoku cloud could send the market until the 1.6547 resistance before meeting the 1.6580-1.6590 area, which includes the four-month peak. More upside pressures could lead the bulls to reach the 1.6890 barrier, taken from the high on May 15.
On the other hand, a drop below the 1.6425 support could take the price to the 1.6305 support before challenging 1.6250. Steeper decreases could switch the short-term bias to bearish, hitting 1.6190.
Overall, looking at the medium-term picture, EURAUD has been in a horizontal trajectory since June 1 and only a decisive close above 1.6590 or below 1.6123 may change this outlook.
