EURAUD has been in the red since the start of February, falling rapidly all the way down to meet the 2021 low of 1.5251 after last week’s bullish attempts hit a wall around the broken ascending trendline at 1.5680.
The market is trading in oversold territory according to the Stochastics and the RSI, though the former is still some distance above its former support region, which preceded the upside price reversals in February and October 2021. The RSI has already touched its previous bottom line, though it needs to show some stabilization before it raises a bullish flag for the market. Likewise, the MACD remains negatively charged below its red signal line and above its 2021 lows.
In the event the 1.5250 floor collapses, the sell-off could stretch towards the 2018 trough of 1.5150. Deeper, the spotlight will fall to the 2017 key barrier of 1.5080.
Should the bulls take control, the first blockage could emerge near 1.5340. Crawling higher, the price could test the 1.5444 barrier before heading for the 1.5530 number. Additional gains from here may drive the pair up to the key 1.5620 resistance.
Summarizing, EURAUD is clearly bearish in the short-term picture, though some recovery cannot be ruled out as technical indicators warn of oversold conditions.
