EURAUD surged to a fresh 2-year high of 1.5922 during today’s European session after it successfully surpassed the 1.5815 key level. The pair recorded the fifth straight green day and the bullish picture in the short-term is further supported by the technical indicators. It is worth to mention that the price has been developing in an uptrend since February 2017.
From the technical point of view, in the daily chart, the MACD oscillator jumped above its trigger line in the bullish territory, indicating further gains. Also, the RSI indicator touched the 70 level and is ready to enter the overbought area.
If price action remains above 1.5922, it could push the price higher towards the 1.6070 resistance level, taken from the peak in January 2016.
An alternative scenario is a downside tendency below the 1.5815 barrier. Then the focus could shift to the 1.5600 psychological level, painting a bearish picture. If the aforementioned level breached, it could increase the decline and bring about a reversal of the trend towards the 23.6% Fibonacci retracement level of 1.5380 of the upleg from 1.3620 to 1.5922.
