EURAUD slipped to a fresh 3-month low earlier today of 1.5574. The price has lost its positive momentum in the longer-term picture as it penetrated the rising trend line to the downside during the previous week. In the short-term, the pair is creating an aggressive bearish rally following the bounce off the 1.6350 resistance level and it fell below the 23.6% Fibonacci retracement level of the upleg from 1.3625 to 1.6350, near 1.5715.
Technically, the RSI slipped in the oversold zone and is still pointing downwards, while the MACD oscillator is strengthening its negative momentum below the trigger and zero lines. Both are confirming the recent downside run in the market. In addition, the 20- and 40-simple moving averages (SMAs) are sloping south.
The price is hovering slightly above the intraday low and if there is a successful penetration of this level, the market could challenge the 1.5425 hurdle, taken from the lows on June 14. Even lower, the 38.2% Fibonacci of 1.5313 could attract greater attention and any leg lower could worsen the bearish outlook, opening the way towards the 1.5270 support region.
An extension to the upside and above the 23.6% Fibonacci could meet the area near the falling trend line of 1.5800. Further up, resistance could run towards the 20-day SMA, around 1.5930, while slightly higher the 1.5985 level could come in focus for traders.
Regarding the long-term view, the bullish sentiment was erased after the downfall below 1.5800 and only a move above this level could now help the market to return to neutrality. Currently, EURAUD seems to be strongly bearish.
