Technical Analysis – EURAUD continues the upward waves
May 4, 2023 10:25 am
EURAUD is heading north as it still trading within an upward sloping channel in the short-term with strong support from the 20-day simple moving average (SMA) as well. The technical indicators are holding in the positive region, with the stochastic posting a bullish crossover within its %K and %D lines, suggesting more bullish movements.
Should the pair manage to strengthen its positive momentum, the next resistance could come around the two-and-a-half-year high of 1.6790. A break above this level would shift the bias to a more bullish one and open the way towards 1.7200, registered in May 2020.
However, if prices turn lower and penetrate the lower boundary of the channel near 1.6445, the risk would shift to the downside, hitting the 23.6% Fibonacci retracement level of the upward wave from 1.4290 to 1.6790 at 1.6195, which overlaps with the 50-day SMA. The next key support to watch lower down is 1.6035.
In brief, EURAUD is bullish in the long- and short-term timeframes and only a slip below the near-term SMAs and the ascending trend line would change the current picture.
EURAUD is heading north as it still trading within an upward sloping channel in the short-term with strong support from the 20-day simple moving average (SMA) as well. The technical indicators are holding in the positive region, with the stochastic posting a bullish crossover within its %K and %D lines, suggesting more bullish movements.
Should the pair manage to strengthen its positive momentum, the next resistance could come around the two-and-a-half-year high of 1.6790. A break above this level would shift the bias to a more bullish one and open the way towards 1.7200, registered in May 2020.
However, if prices turn lower and penetrate the lower boundary of the channel near 1.6445, the risk would shift to the downside, hitting the 23.6% Fibonacci retracement level of the upward wave from 1.4290 to 1.6790 at 1.6195, which overlaps with the 50-day SMA. The next key support to watch lower down is 1.6035.
In brief, EURAUD is bullish in the long- and short-term timeframes and only a slip below the near-term SMAs and the ascending trend line would change the current picture.
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