The Euro/AUD dollar exchange rate has recently struggled with a key resistance area of 1.6620. The result was a rebound that led the EUR/AUD exchange rate straight to the upward trend line.
The daily chart below shows that the EUR/AUD price movement is supported by the trend line extended from the low of December 2018. The support provided by this trend line has been tested since the second half of last week.
Last Thursday the price plunged into the trend line and reached the demand zone around 1.5900, where buy offers appeared and the closing price returned above the trend line. Another test took place at the beginning of this week. Monday’s closing under the trend line indicated a potential for declines, but yesterday buyers returned to the market. Today, too, increases are continuing, which gives the opportunity to return to the current trend.
In the case of the above scenario, the nearest resistance will now be around 1.6309. After defeating it, buyers can head back to the zone within 1.6620.
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