Technical Analysis – EURAUD remains below 200-day SMA and within ascending channel

EURAUD is trying to overcome the 50.0% Fibonacci retracement level of the down leg from 1.6220 to 1.4320 at 1.5270 which halted the bullish movement several times in the preceding sessions. The RSI indicators is heading north above the 50 level, while the stochastic oscillator posted a bullish crossover within its %K and %D lines. In trend indicators, the 20- and 40-day simple moving averages (SMAs) are pointing upwards around the 38.2% Fibonacci.

If the price overcomes the 1.5330 resistance, one immediate barrier could come from the 200-day SMA at 1.5370 ahead of the 1.5445 level. Slightly higher, the 61.8% Fibonacci of 1.5495 and 1.5570 could add optimism for more bullish actions, while a climb above the return line of the ascending channel could endorse the short-term positive bias.

On the other hand, a drop back below the 1.5200 round number would take the market until the short-term SMAs at the 38.2% Fibonacci of 1.5047. More declines could open the way for a bearish correction at 1.5860 and the 23.6% Fibonacci of 1.4770.

All in all, EURAUD is showing positive sings but a jump above the 200-day SMA is expected to confirm the current view.

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