EURAUD: Price to Resume Fresh Drops

The EURAUD price is poised for fresh drops.
The bears may take the leading soon.

EURAUD Weekly Price Analysis – June 1

 Its about time for EURAUD pair to resume fresh drops after updating the bullish momentum. The Yen has completed the bullish race and the new bearish correction is at the corner. Hence, if the bears could put more aggression on the selling momentum, the Yen price may slide further to hit the $1.63 previous support level which might further extend to the $1.59 lower support value, resulting in a good entry point for the sell traders.

EURAUD Market
Key Levels:
Resistance levels: $1.76, $1.77, $1.78
Support levels: $1.59, $1.58, $1.57

EURAUD Long-term Trend: Bullish (Daily Chart)

The EURAUD price might resume fresh drops in its long-term outlook. The currency pair is preparing for a new bearish phase, even though the price still trades above the supply levels, indicating a bullish trend, the bears might take the lead, as the market is overbought.
The high impact of the bulls at the $1.75 high mark in the last session has sustained the pairs’ bullish momentum in its recent high.

Nevertheless, it seems the bears will take over the Yen price and commence the new bearish phase as the buying pressure is exhausted.

As the daily chart begins today, bullish actions sent the EURAUD price higher, reaching the $1.76 supply level above the EMA-50, indicating an uptrend.

However, a divergence is noticed as the market price of EURAUD now points down in the overbought region of the daily stochastic, indicating that the buying momentum has ended, while the bears are preparing for a new bearish phase and this may slide below the $1.63 low level and drop further to reach the $1.59 lower support level in the coming days in its long-term outlook.

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

In the medium-term outlook, the EURAUD pair is in a bullish trend, preparing for fresh drops, following the completion of the bullish momentum.
The sustained bullish pressure at a $1.76 supply value during the last action has made the Yen price trade above the supply trend levels in its recent high.

Exhaustion sets in as sellers returned briefly to commence the new bearish phase at a $1.75 support level above the moving average as the 4-hourly chart opens today, indicating that sellers are coming gradually into the market to resume fresh drops and stage a play.

Thus, if the bears could push harder, the price of EURAUD may slide further to retest the $1.72 low value to hold the bullish trend.

Additionally, the price of the Yen pointing down at the overbought region of the daily stochastic indicates that fresh drops have just resumed.

As a result, the market value of EURAUD might drop further to the $1.59 lower support in the coming days in its medium-term outlook.

Note: Learn2.Trade is not a financial advisor Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.