EURAUD’s aggressive upleg since the early March breakout fell short of retesting the October 20, 2020 high of 1.6826. However, the bulls should feel pretty confident considering the 15% rally they have staged since the August 2022 lows. They are actually preparing the ground for another move higher as they are currently trying to record a daily close above the August 20, 2021 high at 1.6435.
Despite the fact that the Average Directional Movement Index (ADX) is pointing to an almost trendless market, both the RSI and stochastic oscillator appear to favour the bulls. The RSI is edging higher, confirming the past three session’s rally. More importantly, the stochastic has climbed above its moving average and is moving almost vertically higher.
Should the bulls remain in control of the market and clear the August 20, 2021 high at 1.6435, they are expected to target 1.6583, the August 24, 2015 high. Even higher, the April 26 high at 1.6785 awaits them, with the ultimate target being the October 20, 2020 high at 1.6826.
On the other hand, the bears are under pressure to defend the 1.6453 level. If they are successful, they could try to push EURAUD towards the busy 1.6250-1.6313 area. This range has repeatedly proved its importance and it is currently defined by the February 11, 2016 high and the 50-day simple moving average (SMA). The path then is clear until the 1.5831-1.5969 range.
To sum up, with the overall technical picture turning bullish EURAUD bulls are ready for another aggressive rally towards the 1.6826 level.
EURAUD’s aggressive upleg since the early March breakout fell short of retesting the October 20, 2020 high of 1.6826. However, the bulls should feel pretty confident considering the 15% rally they have staged since the August 2022 lows. They are actually preparing the ground for another move higher as they are currently trying to record a daily close above the August 20, 2021 high at 1.6435.
Despite the fact that the Average Directional Movement Index (ADX) is pointing to an almost trendless market, both the RSI and stochastic oscillator appear to favour the bulls. The RSI is edging higher, confirming the past three session’s rally. More importantly, the stochastic has climbed above its moving average and is moving almost vertically higher.
Should the bulls remain in control of the market and clear the August 20, 2021 high at 1.6435, they are expected to target 1.6583, the August 24, 2015 high. Even higher, the April 26 high at 1.6785 awaits them, with the ultimate target being the October 20, 2020 high at 1.6826.
On the other hand, the bears are under pressure to defend the 1.6453 level. If they are successful, they could try to push EURAUD towards the busy 1.6250-1.6313 area. This range has repeatedly proved its importance and it is currently defined by the February 11, 2016 high and the 50-day simple moving average (SMA). The path then is clear until the 1.5831-1.5969 range.
To sum up, with the overall technical picture turning bullish EURAUD bulls are ready for another aggressive rally towards the 1.6826 level.
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