EUR/AUD analysis: only bullish above 1.6250
19:54, 10 July 2020
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The EUR/AUD pair has been coming under downside pressure this month, following the recent technical rejection from the 1.6450 level.
EUR/AUD analysis shows that bulls need to anchor the price above the 1.6250 level to avoid further losses towards the 1.6100 support area.
EUR/AUD medium-term price trend
The EUR/AUD pair has been gradually drifting lower, due to broad based strength in the Australian dollar.
EUR/AUD technical analysis over the medium term shows that bulls need to recover the pair above its key 200-day moving average, around the 1.6250 level, to encourage technical buying.
The daily time frame shows that a bearish head-and-shoulders pattern, with a downside projection of more than 3,500 points, continues to loom over the pair.
The neckline of the pattern is located around the 1.6100 technical area. If bulls fail to recover price above the 1.6250 level, then bears may force price towards neckline support.
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EUR/AUD short-term price trend
EUR/AUD technical analysis shows that the pair is bearish over the short term while trading below the 1.6350 level.
Lower time frame analysis shows that the EUR/AUD pair is currently trapped inside a triangle pattern, between the 1.6200 to 1.6350 levels.
A bullish breakout above the 1.6350 level could see the pair revisiting the 1.6500 resistance level.
A sustained bearish breakout below the triangle pattern is likely to prompt the EUR/USD pair to decline towards the 1.6100 support area.
EUR/AUD technical summary
EUR/AUD technical analysis highlights that the pair is trading at a critical juncture over the short and medium-term. A strong recovery can take hold if the price moves above the 1.6250 level.