The end of last week brought a weakening of the euro against the Australian dollar. On Friday evening there was a breakthrough of support at 1.6060. The new week started with a slight retest of this level. From its success, it remains to be seen whether EURAUD will continue to fall or whether it will return to a broader sentiment.
Situation calms down at 1,6060
So far, the movement of currencies in the new week is limited, which can be seen very well on EURAUD. The currency pair has been on an upward trend since the beginning of December, and we are now experiencing the first stronger bearish reaction in a long time. The euro exchange rate against the Australian dollar weakened at the end of last week and is now testing support at 1.6060 from below.
If there is a downward rebound, bears may push the price around the support at 1.5860, or even lower at 1.5760. This has a potential for 150-250 pips of profit. If the bulls return, the goal for them will be the resistance to 1.6340, which, excluding short-lived flash crash, has been holding back growth on this pair for many months.