EURAUD retreated back to the 1.57 region after it found strong resistance on the almost 10-year high of 1.6658 but is currently challenging again the 23.6% Fibonacci level of the upward move from 1.3625 to 1.6658, which is around 1.5940. The bullish correction is confirmed by the technical indicators. The stochastic oscillator has steeply bounced back above its 20 oversold level, while the RSI indicator keeps sloping up to reach its 50 neutral mark.
If the price successfully surpasses the 23.6% Fibonacci mark, the focus could shift up to the 20-day simple moving average (SMA) currently at 1.6030. Moving higher, the bulls might find strong resistance at the 1.6350 barrier, taken from the highs on October 2018.
On the downside, immediate support could come from the 40- and 200-day SMAs currently near 1.5860. Below these lines, though the price could re-challenge the 1.5770 hurdle, before dropping even lower, to meet the 1.5670 barrier.
Concluding and looking at the long-term timeframe, EURAUD has been strongly positive creating higher highs and higher lows since February 2017.
