EUR/AUD Holds Above May Low to Bounce Along 50-Day SMA

EUR/AUD bounce along the 50-Day SMA (1.6282) as it holds within last week’s range, and the exchange rate may attempt to retrace the decline from the yearly high (1.6786) should it track the positive slope in the moving average.

EUR/AUD Rate Outlook

EUR/AUD appears to be stuck in a narrow range after failing to extend the series of higher highs and lows from last week, and lack of momentum to push above 1.6380 (78.6% Fibonacci extension) may push the exchange rate back towards the 1.6140 (61.8% Fibonacci extension) region, which largely lines up with the monthly low (1.6137).

Nevertheless, EUR/AUD may attempt to break out of the range bound price action as it holds above the moving average, with a move/close above 1.6380 (78.6% Fibonacci extension) bringing the monthly high (1.6671) on the radar.

Additional Resources:

AUD/USD Coils Above May Low - Australia Wage and Jobs Report on Tap

--- Written by David Song, Strategist

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