The EURAUD is in an upward trend, which is well illustrated by the weekly chart below, where the highs and lows are arranged at higher and higher levels.
In addition, the quotes are currently close to the key confluence zone, where three levels converge:
- horizontal support within the round level of 1.5800,
- 20-week moving average, which works great as dynamic support in the current trend,
- an upward trend line running from the 2017 low.
There is, therefore, a good chance of reflection from the support confluence zone discussed above. The continuation of the upward trend could then bring the stock back to this year’s highs and the 1.6250 level, which is slightly higher, where the 2016 highs fall out.
Alternatively, breaking the support zone would open the way towards 1.5230. Near this level, there is a low from the current year.