EUR/AUD posted an aggressive bullish rally in a previous couple of weeks after the bounce off the 1.5580 level. However, the pair has been developing within a consolidation area since the end of January. The price trades within the upper boundary of 1.6140 and lower boundary of 1.5270.
Moreover, the pair stands above the 20- and 40-simple moving averages (SMA), which recently recorded a bullish crossover. However, the technical indicators are suggesting for a bearish movement. The RSI indicator is sloping south in the overbought zone, while the %K line of the stochastic oscillator holds below the %D line, indicating further declines.
Currently, the price is returning below the upper boundary and the next barrier to have in mind is the 20-SMA around 1.5785 at the time of writing. In case of deeper moves, the price could challenge the 1.5580 level.
On the flip side, if EUR/AUD surpasses the 1.6140 and 1.6190 resistance levels it could move towards the 1.6250 level, taken from the highs on February 2016. Clearing this key level, the upside pressure could drive the price until the next major resistance at 1.6580, where it topped on August 2015.
In the bigger picture, having a look at the weekly chart, the price has been in an upward trend since February 2017 following the touch on the 1.3620 support zone.
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