With the ECB meeting today markets are rightly focussed on the EUR crosses. We join EURAUD at an interesting junction with price breaking higher from its trend line resistance yesterday and reaching its 50 and 100 DMAs at 1.56483 resistance today. Depending on the market reaction to the ECB decision and press conference the price may move above resistance and make an attempt to reach the 1.57000 level or even the 1.57691 level which marks the boundary of a resistance band up to 1.58153. A break of this area in the coming days can see price advance further to 1.60000 and the highs around 1.61000.
It should be noted that price is channelling higher on the weekly time frame but the bottom of the channel has not been properly tested and remains around 1.50000. A reaction to the ECB where the price moves lower would focus on 1.55525 as light support with stronger support at the 1.54938 level where the 200 DMA is positioned along with the broken trend line. A loss of this area would see price re-enter the down channel with supports at 1.54147 and 1.53228 followed by 1.52595. A push lower would test the 1.51553 level and the channel bottom at 1.51183.
