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EUR/AUD rebounds but stays capped, bearish trend in focus

A decisive break below 1.6072 to 1.6108 would resume the broader downtrend from 1.8554, with 1.5359 cited as the next target.

Reported · Written up by our desk · Major Pairs

EUR/AUD rebounded after dipping to 1.6072 last week, but upside is seen as capped below 1.6258, which has turned from support into resistance, according to Action Forex. The outlet said the initial bias is neutral this week while the broader outlook remains bearish.

On the downside, a decisive break of 1.6072 to 1.6108 would resume the downtrend from the 1.8554 high, with 1.5359 identified as the next projection level. By contrast, a decisive break above 1.6258 would instead bring a stronger rally toward the 1.6444 resistance level.

In the bigger picture, Action Forex said the fall from 1.8554 is underway as the third leg of a pattern tied to prior peaks, and that sustained trading below the 55 M EMA at 1.6554 would confirm the bearish case. The outlet added that in that scenario, the path would reopen back toward 1.4281, as long as 1.6617 resistance holds on any rebound.

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