EURAUD hits a six-month low with a significant decline
- EURAUD returns some of today’s losses
- Momentum is still bearish
- Strong resistance at 200-day SMA
EURAUD tumbled to a new six-month low of 1.6207 earlier today but is now hovering above the 1.6260 support level, which seems to be a significant line for traders.
According to the technical oscillators, the RSI indicator is pointing down in the bearish region, while the MACD is strengthening its negative momentum beneath its trigger and zero lines. Both suggest that the next movement would be to the downside rather to the upside.
If resistance at the 200-day simple moving average (SMA) at 1.6465 stands firm though and the bearish tendency continues, the pair could plummet towards the 1.6000 psychological level. Then, if the bears breach this line, the negative wave might pick up pace towards the 1.5845 barricade.
In the positive scenario, where EURAUD jumps above its 200-day SMA, traders might pay attention to the 20-day SMA at 1.6490. A bounce higher could take a breather around the 1.6520 barrier. If the bulls successfully claim the latter, they might fight for the 50-day SMA at 1.6590 ahead of the 1.6665 resistance.
All in all, despite the negative mood in the market, if the price remains above 1.6260, it would leave the door open to another upturn. A jump above the SMAs could renew buying appetite.