EURAUD is continuing its aggressive selling interest from the eleven-year peak of 1.9800, achieved on March 19. The price is still moving below the short-term simple moving averages (SMAs) and the stochastic posted a bearish crossover within its %K and %D lines. However, the MACD is gaining some ground above its trigger line but remains below the zero level.
Should the market extend losses, support could be met between the five-month low of 1.6017 and the 1.5890 obstacle. Then, if the market fails to hold above this barrier, the next stop could be at 1.5660, identified by the trough on April 2019.
On the flip side, if the pair bounces up, surpassing the SMAs and the 1.6590 mark, strong resistance could be met at the 23.6% Fibonacci retracement level of the down leg from 1.9800 to 1.6017 at 1.6890. Steeper increases could drive the price north towards the 1.7200 – 1.7360 zone.
Concluding, EURAUD is bearish as it is posting lower lows and lower highs in the daily timeframe and only a significant run above the 61.8% Fibo of 1.8350 may change this outlook.
