EURAUD – Possible Reversal at the $1.74 Support Level

The EURAUD pair is oversold and is on the verge of an upside reversal.
Sell traders may take their position as desired before the range breakup.

EURAUD Weekly Price Analysis – January 4

The EURAUD pair shows a bearish flag. However, a possible reversal at the current support level of $1.74 is imminent as the market is already oversold. Hence, if all the current support holds and the bulls push higher, exchanging hands with the sell trader at the mentioned support, the price breakout may test the previous high of $1.81 and extend to an upper resistance level of $1.90, signaling a potential buy trade for interested traders.

EURAUD Market
Key Levels:
Resistance levels: $1.80, $1.81, $1.82
Support levels:    $1.76, $1.75, $1.74

EURAUD Long-term Trend: Bearish (Daily Chart)

The EURAUD market is having a bearish posture and is on the verge of an upside reversal on the daily chart.
The pair signals a sell trade with the price drop below the resistance level, suggesting a bearish trend. Meanwhile, the current trend will soon be nullified as the market is already oversold.

The sustained bearish pressure at $1.75 in the last session has contributed to the recent price level

After reaching yesterday’s high of $1.75, EURAUD sellers increase their swagger, and the currency pair dropped to $1.74 below the EMA-50 as the daily chart opens today, indicating a bearish impact and a sell trade.

Notably, the currency pair is oversold, as indicated by the daily stochastic, pointing down below the 10% range, suggesting a price reversal at the aforementioned support is possible in the interim.

Given this, in the long run, the anticipated bullish surge could break through the $1.81 high point and reach the $1.90 upper resistance value in the upcoming days.

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

The EURAUD pair is also experiencing a downward trend on the medium-term chart, although an upward turnaround is yet imminent. This is clear as price continues to make lower highs and lower lows.
The bearish impact on the pair at $1.75 in the last action has contributed to its sell trade setup in its recent drop.

The price of EURAUD hovers at $1.74 support level below the moving averages as the 4-hourly chart begins today.

All eyes are focused on $1.78, but seller congestion at the mentioned support has become impenetrable.

Thus, if the price closes above this level, it would be a turnaround for the buy traders.

Furthermore, the currency pair is on the verge of an upside reversal as the price has fallen below the 10% range of the daily stochastic, indicating that the pair is now in the oversold region of the market.

As a result, the emergence of buyers is imminent at this point, and the next bullish corrective pattern may extend to the $1.90 upper high mark in the days ahead.

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