EUR/AUD Exchange Rate Stays Steady with Cautious Bullish Outlook

Last week, the EUR/AUD currency pair experienced little change, oscillating within a narrow consolidation range between 1.6439 and 1.6742. The market's initial stance continues to be one of neutrality as the week commences. However, the near-term perspective retains a careful optimistic tilt, grounded in the pair's ability to hold above the 1.6439 support level.

Upside Momentum and Resistance Targets

Should the pair push above the 1.6677 mark, the immediate goal would be to reach 1.6742. A decisive climb beyond this point may reignite the prior ascent from the 1.6127 level, setting sights on tackling the 1.6844 resistance.

Medium and Long-Term Technological Analysis

In a larger scope, the decline from the medium-term pinnacle of 1.7062 is perceived as a correction within the uptrend that began at 1.4281, the 2022 low. Overcoming the 1.6844 resistance barrier could signal that the upward trajectory is set to continue past the 1.7062 peak. Conversely, another downturn should find robust support around 1.5846, with the 38.2% Fibonacci retracement of the range between 1.4281 and 1.7062 at 1.6000 ready to propel a rebound.

Reflection on Longer-Term Trends

Assessing the broader trends, the movements in price since reaching the 2020 high of 1.9799 appear to mirror the long-term decline comparable with the rise from the 2012 low of 1.1602. The current rebound from 1.4281 is considered the second phase of this pattern. Provided the 55 Month Exponential Moving Average (EMA), now at 1.5932, remains intact, there's potential for this phase to press forward. Contrariwise, consistent trading beneath the 55 M EMA would bolster the case for an extended decline beyond the 1.4281 low.

EUR/AUD, Outlook, Consolidation