EURAUD: Price on the Verge of Bullish Reversal

The currency pair anticipates a bullish reversal.
The bulls may become crucial in the market sooner.

EURAUD Weekly Price Analysis – December 28

The EURAUD market is on the verge of a bullish reversal as the pair is about to end the selling pressure, preparing to enter a new correction phase. If the bulls increase their buying activity and all support levels remain unchanged, the currency pair’s price may recover and reverse to a bullish pattern, reaching the peak barrier at $1.80 and extending to an upper resistance level of $1.82, suggesting capital inflow into the pair and growing buying pressure.

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 pair is on the verge of a bullish correction and has a bearish posture in the long-term perspective.
The price is below the EMA line, indicating a downward momentum and the high impact of sellers in the market.

Before yesterday’s session ended, the sell traders moved down to the $1.76 support level. This strengthened sellers’ ability to maintain the trend at its most recent low.

As a result, the currency pair market is currently oversold and poised for an upward reversal.

Due to the actions of sell traders, the EURAUD price fell even more today, hitting a low of $1.75 below the supply levels, suggesting a good entry point for sellers.

However, the pair price may see an upside reversal at the mentioned support to retest the previous high of $1.80 level if there is a fresh spike in buyer demand, giving long traders an excellent recovery potential.

In conclusion, since the pair has dropped to the oversold area of the daily stochastic, the EURAUD pair is likely to experience an upside correction, indicating that the pressure to sell is probably going to end shortly, which will force buyers to start again sooner.

Given this, the next bullish corrective pattern may extend to the $1.82 high mark sooner in its long-term perspective.

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

The EURAUD pair also trades in a bearish trend market in the medium-term outlook due to the high impact of short-term traders on the price flow. A downward trend is shown by the price bar being below the EMA-50.
The bearishness in its recent low has been aided by the bears’ strong order flow at the $1.76 high value in the previous trading session.

However, the current trend will soon be nullified as the market is already oversold.

As the 4-hourly chart begins today, bearish actions sent the EURAUD price lower, reaching the $1.75 support level below the moving average.

Hence, the bullish momentum might be triggered, and the pair price may experience a positive correction to break the previous high value of $1.78 if the current support remains unmoved and the bulls increase their activities in the market.

Additionally, the EURAUD pair has dropped below the daily stochastic 1% zone, indicating that an upside reversal is imminent.

In light of this, the price may reverse and pump to reach the $1.80 upper resistance level in the days ahead in its medium-term forecast.

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