The EUR/AUD cross continues its upward trajectory for the third consecutive day, trading near the 1.6300 mark during the Asian session on Thursday. On the daily chart, there are early signs that momentum may be shifting from bearish to bullish as the cross attempts to break out of a descending channel pattern.
The 14-day Relative Strength Index (RSI) remains just below the 50 mark, indicating that bearish momentum still prevails. However, a move above the 50 level would signal a potential shift toward bullish sentiment for the pair.
Resistance and Potential Upside Breakout
On the upside, the EUR/AUD cross is testing immediate resistance at the nine-day Exponential Moving Average (EMA) at 1.6308, which coincides with the upper boundary of the descending channel. A breakout above this resistance level could weaken the prevailing bearish bias and pave the way for further gains. In this case, the pair could target its two-month high of 1.6600, reached on November 1.
Support Levels and Bearish Risks
On the downside, support for EUR/AUD is found at the three-week low of 1.6163, recorded on November 7. A break below this level could reinforce the bearish outlook, potentially driving the cross toward the psychological support level at 1.6000.
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