EURAUD currency pair since mid-February moved north as a result of which the market overcame an important resistance 1.3893, which after re-test rejected as support. Now, from beginning of the week we observe declines which in near future could lead to re-test last week defeated resistance (now support) around the level of 1.4000. Rejection of this support could be a signal for continuation of growth. Pro-growth scenario is supported by fact that on the Stochastic oscillator is a divergence, which indicates that pair is more oversold than in previous (lower) low. If this scenario will occur, potential growth could reach up to around the level of 1.4270 while first reaction of bears would appear already around Friday’s highs.
