EURAUD has been tumbling in the medium-term but managed to find significant support at the eight-month low of 1.5356 in late October. Since then, the pair has been trending upwards, surpassing both its 50- and 200-period simple moving averages (SMAs). This positive momentum suggests that the near-term bias seems bullish as well.
The momentum indicators reinforce the pair’s positive short-term picture. The stochastic oscillator is pointing upwards near the 80-overbought area, while the RSI is hovering well above the 50-neutral mark.
Should the price continue its ascent in the coming sessions, the next barrier could be met at the 1.5750 region. Clearing this hurdle would reinforce the resumption of the short-term uptrend, setting the stage for the 1.5850 level. Higher up, the price rally might encounter a tougher test at the 1.5995 hurdle.
On the flipside, if positive momentum fades, the price could decline towards the 1.5600 region that has provided both support and resistance on multiple occasions in the last two months. A violation of this level might send the price to test 1.5533. Failing to find support at the aforementioned level, the price could then seek to halt its dip at 1.5475 or even lower at the 1.5396 barricade.
To sum up, EURAUD seems to have the necessary momentum to propel even higher. A break above the 1.5995 barrier would erase the medium-term downtrend, while crossing below 1.5533 would turn the short-term picture back to bearish.
