EUR/AUD Price Forecast: Tests 1.6300, nine-day EMA, descending channel’s upper boundary
- EUR/AUD tests an immediate barrier at a nine-day EMA at 1.6308 level near the upper boundary of the descending channel.
- An emergence of the bullish bias is possible If the 14-day RSI rises above 50 level.
- The primary support appears at its three-week low of 1.6163.
The EUR/AUD cross gains ground for the third consecutive day, trading near the 1.6300 mark during the Asian session on Thursday. On the daily chart, there are signs that the momentum may be shifting from bearish to bullish as the cross attempts to break above the descending channel pattern.
The 14-day Relative Strength Index (RSI) remains just below the 50 level, indicating continued bearish momentum, though a shift could be on the horizon. If the 14-day RSI rises above 50, it would signal the emergence of bullish sentiment.
On the upside, the EUR/AUD cross tests the immediate resistance at the nine-day Exponential Moving Average (EMA) at the 1.6308 level, aligned with the upper boundary of the descending channel. A breakout above this channel could weaken the bearish bias and support the cross to navigate the region around its two-month high of 1.6600, which was recorded on November 1.
In terms of support, the EUR/AUD cross would meet support at its three-week low of 1.6163, which was recorded on November 7. A break below this level could reinforce the bearish bias and lead the cross to approach the “throwback support” at the psychological level of 1.6000.
EUR/AUD: Daily Chart
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