EURAUD Penetrates the Uptrend Line But Finds Support at 23.6% Fibo

Technical analysis of Forex market

EURAUD is currently rebounding off the 23.6% Fibonacci retracement level of the down leg from 1.6220 to 1.4320 at 1.4767. The pair broke the uptrend line to the downside in the previous sessions, suggesting a bearish movement. The MACD is moving sideways around the zero level; however, the RSI is ticking up in the bearish region.

A failure to overcome the 1.4890 resistance level and the ascending line could send the price down to the 1.4767 support and the 1.4600 psychological mark. Even lower, support could be next found around the 1.4480 barrier, while a decisive close below the five-year low of 1.4320 could stage a steeper sell-off.

Alternatively, if 1.4890 proves easy to get through, the spotlight will turn to the 20-day simple moving average (SMA) at 1.5000, ahead of the 38.2% Fibonacci at 1.5047. On top of that, the bulls would need to clear the 50.0% Fibonacci of 1.5270 to push the rally towards the 1.5330 barrier.

In the medium-term picture, EURAUD turned negative after violating the ascending trend line started from the 1.4320 low. Should the market jump above the previous highs of 1.5270, the outlook may turn brighter.