EURAUD is losing some ground after the sharp upside rollercoaster in the preceding week. The price struggles below the 1.5880 resistance level and above the 23.6% Fibonacci retracement level of the upleg from 1.3620 to 1.6350 around 1.5708. The RSI indicator is moving sideways above the 50 level, while the stochastic is heading south.
If the price drops lower, it could retest the 20-day simple moving average (SMA) near 1.5643. Should the pair breach the latter, bearish action may pick up speed towards the 1.5515 support level, while further declines may bring the previous trough of 1.5345 into view.
On the upside, the pair found immediate resistance at the 40-day SMA near 1.5760 and a jump above it would increase the chances of challenging the 1.5880 barrier. Moving higher, bulls might find resistance around 1.5980, taken from the inside swing low on October 2.
Concluding and looking at the long-term timeframe, EURAUD is slightly positive creating higher highs and higher lows during this year. However, in the short-term the pair seems to be in a bearish correction mode.
