EURAUD Bulls Looking For Support Bounce

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EURAUD has repeatedly tested support level on a trend line that has been evident since June. Prices are now looking to test the said support level once again, as we move to the lower 1.62 range.

The hidden bullish divergence noted on the momentum indicator suggests that another bounce on the trend line could be likely. This would make way for another attempt to the upside, which would move prices into the Ichimoku cloud.

The next target would then be the 61.8% of the 1.6828/1.6033 downside Fibonacci leg. This would clear the path for a possible move to the 50% and 38.2%, leading to fresh highs.

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A look at the shorter-term perspective indicates a downside descending channel. Prices are trading at the median regression with bias remaining to the upside for another attempt to break the upper channel.

Should prices reach the said level, this would negate the potential hidden bearish divergence and lead prices past the 38.2% Fibonacci long-term leg.

The lower border of the Ichimoku cloud would be significant if the EURAUD paid can move past the lower border. This could lead to October highs if prices can stay away from the lower channel.

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