EUR/AUD is pushing aggressively lower, following the bounce off the 20-day simple moving average (SMA) earlier in the day. Technically, the RSI remains in the negative zone and is turning lower, while the stochastic oscillator is strengthening its negative momentum, approaching the 20 level. Both are confirming the recent bearish run in the market in the short-term.
Should the pair stretch south, November 15’s low of 1.5515 could provide immediate support before the pair touches the 38.2% Fibonacci retracement level of the up-leg from 1.3620 to 1.6350, around 1.5310. Slightly lower the pair could touch the 1.5270 level, taken from the trough on June 5.
On the other hand, a recovery could retest the 23.6% Fibonacci mark of 1.5710 before attention turns to 1.5790, the high on November 21. Moving higher, the 40-day SMA near 1.5940 and the 1.5980 area should attract attention, while a significant rally above that region could last until 1.6350, the peak on October 11.
To sum up, EUR/AUD hovers below strong upside obstacles, increasing the chances for a continuation of the negative view.
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