Daily Forex Analysis – EUR/AUD
The recent decisive movement below the 1.6554 support level by EUR/AUD suggests that the corrective rebound from 1.6847 has likely reached its conclusion. Additionally, this development could signify a readiness to resume the decline that began from the 1.7066 high. Currently, the intraday bias has shifted back to the downside, eyeing the next support level at 1.6323. Conversely, if the currency pair manages to climb above the 1.6592 minor resistance, this would temporarily neutralize the intraday bias.
From a broader perspective, the strong support manifested by the medium-term rising trend line, starting from the 2022 low of 1.4285, implies that the upward trajectory from this point remains active. A steady breakthrough of the 1.7066 level could set the stage for reaching the 61.8% Fibonacci retracement of the decline from the 2020 high of 1.9803 to 1.4285, aiming towards 1.7695. Overall, the outlook will maintain a bullish tone as long as the 1.6323 support is intact. However, a decisive breach of this support could confirm a medium-term topping at 1.7066 and potentially lead to a more substantial fall toward the 1.5850 support zone.
This analysis of EUR/AUD focuses on recent pivotal price actions and their implications on both short-term and long-term trends, particularly considering key levels set during the high of 2022.
Analysis Summary
EUR/AUD’s break below 1.6554 indicates an end to its recent rebound and a potential resumption of the downtrend from 1.7066. The pair is now looking at 1.6323 as its next support. If sustained above, the medium-term outlook remains bullish, targeting 1.7695, as long as the support at 1.6323 holds.
Key Bullet Points
- A break below 1.6554 suggests the end of EUR/AUD’s corrective rebound.
- The next important support lies at 1.6323.
- Sustained trading above 1.6323 keeps the medium-term outlook bullish.
