EURAUD: Bulls May Lose Control

The EURAUD pair remains in an uptrend on both outlooks.
The currency pair could decrease in value sooner despite its uptick momentum.

EURAUD Weekly Price Analysis – October 12

Today, the EURAUD bulls may lose control as the market is in the overbought region, signaling a potential bearish reversal. The pair may encounter price drops as the currency pair’s buying pressure is about to end. Thus, a further increase in the bear’s pressure may break down at the $1.72 low level, and extend further to a $1.65 lower support value, suggesting a sell signal for the short traders.

EURAUD Market
Key Levels:
Resistance levels: $1.78, $1.79 $1.80
Support levels:     $1.70, $1.69, $1.68

EURAUD Long-term Trend: Bullish (Daily Chart)

Over the past 24 hours, the EURAUD pair has experienced a notable surge, leading to a broader market rally in its higher time frame.

The price is trading above the moving average, indicating bullish momentum.

However, the bulls may lose control as the buying pressure is about to subside due to high demand for the currency pair.

The impulsive move by long traders in the last few hours has enabled the price to maintain a stable uptrend at its recent level.

The EURAUD market appears to be attractive today as it breaks over the resistance levels at $1.79 amidst a surge in network activity.

Meanwhile, the bulls may lose control if sellers add more aggression to their selling pressure and break down at the $1.72 previous low barrier, signaling a sell trade.

Notably, the signal of the stochastic oscillator points up at around 89% in the overbought region, suggesting the currency pair may experience a price reversal soon.

As a result, the bulls may lose control; while a temporary drawdown may occur, bringing the EURAUD price to a lower level at $1.65 within the range in the days ahead in the long-term.

EURAUD Medium-term Trend: Bullish (4H Chart)

The pair remains in an uptrend in the medium term. However, in the short term, EURAUD bulls may lose some momentum as the market price action enters the overbought region.
The price bar remains above the EMA-50, confirming the underlying bullish trend direction.

During the last session, sustained bullish pressure at the $1.76 high level helped the price maintain strength above the supply levels, supporting the current uptrend.

Nonetheless, short-term market selling pressure has resumed, which could temporarily challenge the bullish direction.

The market price of EURAUD could encounter more downward pressure as it drops to a $1.78 low mark above the moving averages as the 4-hourly session opens today, initiating another downward correction due to a brief return by short traders.

It’s worth noting that if the bears could increase the pace of their selling, the EURAUD bulls would lose control, and the upward trajectory might encounter another obstacle below the resistance at the $1.75 support value; a breach below this level could send the currency pair trading 25% lower.

Furthermore, the EURAUD pair’s price is pointing lower at an overbought area at 89% of the daily stochastic, suggesting that further negative pressures are on the horizon.

According to its medium-term estimate, the price may decline in the coming days to hit the $1.75 lower support level.

Therefore, before making a medium-term investment, sellers might wait for this action to commence.

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