EURAUD is still extending its bullish rollercoaster to a fresh eleven-year peak of 1.8415, posting its fifth consecutive green day. The moving average lines are following the price’s action and are pointing north. Additionally, the RSI indicator is hovering in the overbought territory with weaker momentum than before, while the stochastic is edging higher above the 80 level.
On the upside, the price could attempt to overcome the eleven-year high and test the 1.8600 round level, which has been standing since January 2009. If this level is successfully broken the door could open for the next psychological levels, such as 1.8700 and 1.8800.
A reversal to the downside, however, could find immediate support at the 261.8% Fibonacci extension level of the downward move from 1.6790 to 1.5890 at 1.8200. If the latter fails to pause bearish movements, the next target could be at the 23.6% Fibonacci retracement level of the upside move from 1.5340 to 1.8415 at 1.7690.
Overall, in the short-term, the outlook is strongly positive over the last month, after the pullback at the 1.6080 support level.
