EURAUD has advanced considerably in Monday’s session and stands above the 40-simple moving average (SMA), while it hit a five-week high of 1.5754 last week. Price action is at the moment taking place not far below this peak.
Looking at momentum indicators, the RSI indicator is pointing north above the threshold of 50, suggesting that the market could keep rising in the near term. The MACD also supports this view in the positive territory, while it is strengthening the bullish momentum.
In the wake of more positive pressures and a climb above the 1.5775 significant resistance level, the market could meet resistance at the 1.6140 barrier, identified by the April 25 high. Slightly above this level, the 1.6190 level is acting as a strong obstacle for the bulls.
On the flip side, a move to the downside could see immediate support at the 23.6% Fibonacci retracement level of the upleg from 1.3620 to 1.6190, near 1.5583. A successful close below this level could see a retest of the previous low of 1.5270, while in case of steeper declines, the pair could breach this trough, diving to the 38.2% Fibonacci mark of 1.5205.
Turning to the medium-term picture, the market seems to be in a bullish mode given that EURAUD is trading above the 20- and 40-SMAs.
