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The EUR/AUD pair remained in a sideways range between 1.6108 and 1.6381 last week, with the technical outlook unchanged. Analysts suggest the recent rise from 1.6108 could represent the third leg of a corrective pattern from the 1.6125 level. A breakout above 1.6381 may trigger a stronger rebound toward the 55-day EMA (currently at 1.6411). However, a firm break below key support could shift the bias, though the initial weekly bias remains neutral. Traders are advised to monitor these levels for potential trend confirmation.
For forex traders, the EUR/AUD rangebound movement offers opportunities for range trading strategies. The 55-day EMA acts as a dynamic resistance, while the 1.6108 level serves as critical support. A sustained move above 1.6381 could attract buyers, whereas a breakdown below 1.6108 might signal a deeper correction. The pair’s volatility remains moderate, making it suitable for both short-term and medium-term positions.
The broader implications for forex markets hinge on whether EUR/AUD can break out of its consolidation phase. A decisive move in either direction could influence cross-currency flows, particularly between the Eurozone and Australia. Traders should watch upcoming economic data from the ECB and RBA for potential catalysts. Key levels to monitor include 1.6381, 1.6411, and 1.6108.
