EURAUD has witnessed a minor upside reversal after bouncing back from its November low. However, the overall bearish outlook is still maintained as the price is well below its 50- and 200-day simple moving average (SMA).
The negative bias is mostly supported by the short-term momentum indicators, as the RSI is hovering below its 50 neutral mark. However, the MACD is found below zero but above its red signal line, which indicates that the negative momentum might be fading.
If the bears remain in charge, initial support might be found at the 1.5527 level. Breaking below this barrier, could pave the way towards the 1.5447 obstacle before testing the November low of 1.5355. A further descending movement below this point could strengthen the pair’s negative momentum, sending the price to test its February low of 1.5251.
On the flip side, should the bulls regain control, initial support might be found at the 1.5650 barrier. Surpassing this level could open the door towards the congested region which encapsulates the 1.5744 support, the 200-day SMA and the 50-day SMA currently found at 1.5768. Advancing beyond that region could turn the cards around for the pair, changing its outlook to bullish.
In brief, the overall outlook for the pair is bearish. For that to change, the buyers would need to breach the congested region including the 50- and 200-day SMA.
