The price of EURAUD has found resistance at the recent monthly lows but the price could find support at the major 1.5300 level. Will the price hold or break this key point of interest?
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The price of EURAUD is at a key reversal point in the previous monthly swing lows. However, is the current price action a short term pullback or will the price break lower? Fundamentally the ECB recently hiked interest rates by 75bps with the option to hike further. On the other side of the world the RBA has begun to slow down the rate in which they hike interest rates. This could give favour to the EURAUD bullish trend where we expect 1.5300 to play an important role.
The current monthly trend shows the price has formed a double bottom pattern with a breakout of the neckline which is the 1.5300 level. Not only this but if we move down to the daily chart we can see a recently formed trendline support adds confluence to the 1.5300 level. If the price sees buyers step in at this confluence zone we could expect a continuation of the monthly reversal pattern.
If however the price does not hold at the trend line support we could see a move below which would invite some selling pressure.
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