EUR/AUD Resumes Decline Targeting Lower Projections

The Euro against the Australian Dollar (EUR/AUD) exchange rate has seen a resumed decline, breaking through critical levels on the downside. This recent downward momentum suggests a move towards lower projected values may be underway. Market participants are closely monitoring daily pivot points which are currently set at support level one (S1) of 1.6197, pivot point (P) at 1.6248, and resistance level one (R1) of 1.6289.

Downward Momentum Picks Up

The EUR/AUD pair broke through the 1.6206 level, signaling a return to bearish intra-day bias. The fall, which originates from a high of 1.7062, is now aiming for the 100% projection target of this descent, with calculations suggesting the 1.6106 level could be reached next. Despite this, if the pair were to rise above the 1.6319 minor resistance, we might see a temporary shift to neutral bias. Nevertheless, as long as the 1.6478 resistance point is not breached, the downside risk remains predominant.

Broader Market Perspectives

Observing the wider market picture, the descent from the 1.7062 medium-term peak is seen as a correction in the broader uptrend from the 1.4281 level seen in 2022. Deeper declines could push towards the 38.2% retracement of the upward movement from 1.4281 to 1.7062, reaching around the 1.6000 support level. There is a possibility of strong support emerging at this point, potentially leading to a recovery on the first attempt. However, the downside risk will remain in play until the 1.6844 resistance barrier is surpassed. Should the 1.6000 threshold be broken decisively, we could witness further declines towards the 61.8% retracement level at 1.5343.

EUR/AUD, decline, projection