EURAUD has come under renewed selling pressure, falling back below the 23.6% Fibonacci retracement level of the down leg from 1.6826 to 1.6144 and the Ichimoku cloud. The technical indicators are endorsing the negative bias with the stochastic holding in the oversold territory and the MACD is losing momentum beneath its trigger and zero lines.
Should prices decline, support could be found around the 1.6144 barrier, identified by the low on November 27. Then a step lower could challenge the six-month low of 1.6120 before hitting the 1.6080 support.
However, if the market manages to pick up speed, the 1.6280 level could offer nearby resistance ahead of the 23.6% Fibonacci of 1.6305. A significant close above the latter could move the price until the 1.6360 barrier ahead of the 38.2% Fibonacci of 1.6415.
In the short-term, the outlook remains negative since prices hold below all the moving average lines and the bearish cross between the 20- and the 40-period SMA stays in place.
