EUR/AUD rallied during the European morning Tuesday, breaking above yesterday’s peak of around 1.6155. Overall, the pair has been in a rising mode since July 23rd, while on the 26th, it managed to overcome the downside resistance line drawn from the high of June 21st. What’s more, it is trading above all three of our moving averages on the 4-hour chart. Combined, these technical signs suggest that the short-term picture of this exchange rate is positive.
If the bulls are willing to keep their foot on the accelerator, then we may see them aiming for the high of July 10th soon, which is at around 1.6230. If they manage to overcome it, they could challenge the 1.6260 level next, the break of which could open the door towards the 1.6295 zone, which is defined by an intraday swing high formed on June 26th, and lies slightly above the inside swing low of June 21st.
Looking at our short-term oscillators, we see that the RSI, already above 70, rebounded and now points up. The MACD lies well within its positive territory, above its trigger line, also pointing north. These indicators detect strong upside speed and corroborate the case for some further near-term advances in EUR/AUD.
In order to abandon the short-term bullish case, we would like to see a decisive dip below 1.6090. Something like that could see scope for declines towards the 1.6025 zone, marked by the low of July 26th, the break of which may allow the bears to aim for the inside swing high of July 24th, at around 1.5978.
