EURAUD is reversing lower following the pullback on the eleven-year top of the 1.8200 handle, which overlaps with the 261.8% Fibonacci extension level of the downfall from 1.6790 to 1.5890. The pair today has declined to the nearby 161.8% Fibonacci extension of 1.7320, with backing from the technical indicators.
The short-term oscillators suggest an increase in negative momentum for now. The RSI, in the positive region, is slipping towards the 70 level, while the falling stochastic has moved underneath its overbought mark.
To the downside, immediate support could come from the 38.2% Fibonacci retracement level of the bullish wave from 1.5340 to 1.8200 at 1.7115. Moving lower, the trough of March 5 at 1.6790, which lies near the 50.0% Fibonacci could be revisited. The next hurdles could come at 1.6675, from August 2019 and the 1.6590 inside swing high from January 31, before the 40-day simple moving average, currently at 1.6500.
Otherwise, if buyers push above the 23.6% Fibo of 1.7525, the next key level would be faced at the multi-year high of 1.8200. Climbing higher, the bulls could see the 1.8600 handle, identified by the inside swing bottom on January 2009.
Summarizing, the very short-term bias has turned bullish following the increase above the 1.6790 barrier on February 28, however, the momentum indicators are signaling for a possible bearish correction.
