EURAUD found some footing around the 1.6420 resistance level last week and returned to bearish thereafter in the short-term.
The price is currently testing the 38.2% Fibonacci retracement level of the upleg from 1.5150 to 1.6660 around 1.6080 and the upper surface of the Ichimoku cloud. The red Tenkan-sen is turning lower above the blue Kijun-sen line which is flat and the RSI and the MACD are flirting with negative levels, pointing to a bearish short-term trading.
In the negative scenario, the pair could slip towards the immediate support level of 1.6050 before testing the next psychological mark of 1.5900, which is the 50.0% Fibonacci region.
A pullback on the 38.2% Fibo may drive the pair around the 40-day simple moving average (SMA) currently at 1.6200, while slightly higher the bulls could try to touch the 20-day SMA around 1.6260. Should the pair rise above these lines the 23.6% Fibo of 1.6300 could provide significant resistance to the market.
In brief, EURAUD is expected to pause the southward run in the short-term as it is testing strong support levels, while in the long-term buying interest could advance if the market jumps above the latest high of 1.6450.
