Technical Analysis – EURAUD hits the 1½-year peak again and again
March 29, 2023 9:27 am
EURAUD has been moving sideways since the rebound off the 1.5860 support and the 20-day simple moving average (SMA), unable to surpass the one-and-a-half-year high of 1.6225.
In the short-term, the market could maintain consolidation if the RSI keeps moving below the 70 level and the MACD holds near its trigger line in the positive region. Regarding the trend, this is likely to remain on the upside in the near-term as the 20-day SMA continues to gain strength above the 50-day SMA.
An extension to the upside and above the 1.6225 resistance could meet the August 2021 peak at 1.6435, endorsing the long-term ascending tendency.
On the other hand, if the pair weakens, the 20-day SMA at 1.6075 could provide immediate support ahead of the 1.5860 barrier. Even lower, the 23.6% Fibonacci retracement level of the upward wave from 1.4280 to 1.6225 at 1.5790 could attract greater attention near the uptrend line.
Regarding the medium-term picture, the bullish sentiment endorsed after the rally towards 1.6225 and only a move above it could endorse the current outlook.
To summarize, EURAUD looks neutral in the short-term, while in the medium-term the picture is seen bullish unless the price breaks below the rising trend line.
EURAUD has been moving sideways since the rebound off the 1.5860 support and the 20-day simple moving average (SMA), unable to surpass the one-and-a-half-year high of 1.6225.
In the short-term, the market could maintain consolidation if the RSI keeps moving below the 70 level and the MACD holds near its trigger line in the positive region. Regarding the trend, this is likely to remain on the upside in the near-term as the 20-day SMA continues to gain strength above the 50-day SMA.
An extension to the upside and above the 1.6225 resistance could meet the August 2021 peak at 1.6435, endorsing the long-term ascending tendency.
On the other hand, if the pair weakens, the 20-day SMA at 1.6075 could provide immediate support ahead of the 1.5860 barrier. Even lower, the 23.6% Fibonacci retracement level of the upward wave from 1.4280 to 1.6225 at 1.5790 could attract greater attention near the uptrend line.
Regarding the medium-term picture, the bullish sentiment endorsed after the rally towards 1.6225 and only a move above it could endorse the current outlook.
To summarize, EURAUD looks neutral in the short-term, while in the medium-term the picture is seen bullish unless the price breaks below the rising trend line.
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