EUR/AUD edges towards 2-year high; bullish in the medium-term.
EUR/AUD is rising for the second straight day and is – at the time of writing – up by 0.2% during Monday’s trading.
The Tenkan- and Kijun-sen lines remain positively aligned in support of a bullish bias in the short-term, though they’re both more or less flat at the moment. The latter is an indication of weakening positive momentum for the pair.
Given that price action crosses above the area around the 1.61 round figure, which may hold psychological significance, a barrier to the upside could come around last Wednesday’s two-year high of 1.6190, including the 1.62 handle that may also be of psychological importance.
On the downside, support could come from the range around the current level of the Tenkan-sen at 1.6024 – including the 1.60 mark – with steeper declines shifting the focus to the Kijun-sen at 1.5905.
The medium-term picture is positive: the pair is in an uptrend, recording higher highs and higher lows. In addition, trading is taking place above the 50- and 100-day moving average lines, as well as above the Ichimoku cloud.
Overall, the short-term bias is looking bullish-to-neutral, while the medium-term outlook is conclusively bullish.
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