EUR/AUD could be about to establish a strong uptrend

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Updated: 02 October 2020

Hello traders! The EUR/AUD trend is clearly bullish as price producing higher highs and higher lows while remaining above the 200 Exponential Moving Average.

During the past few days pair has been trading near 1.6328 support, which is confirmed by the 78.6% Fibonacci retracement level applied to the last wave up where price moved to 1.6592 high. At the same time, the uptrend trendline has been rejected along with the 200 EMA.

It is extremely obvious that it is a very strong support area, which has been respected. Therefore, as long as daily closing price remains above the recently produced low at1.6315, the uptrend is highly likely to continue.

The nearest resistance is located at 1.6668, which is 127.2% Fibs applied to the current corrective move down. This means that there is nearly 300 pips growth potential, but only as long as current support is holding.

Bias: Strongly bullish while daily closing prices remain above 1.6315

Potential Support Zone: 1.6330-1.6370

Potential Targets: 1.6668

Have a profitable trading!