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The EURAUD currency pair has broken through a key resistance zone between 1.6360 and the 38.2% Fibonacci correction level of a downward impulse from May. This breakout suggests a potential upward move toward the next resistance target at 1.6600. Technical analysts at ActionForex highlight that the price reversal from this zone since early May has now been decisively breached, signaling bullish momentum.
For traders, this development is significant as it validates a long-position setup. The breakout above 1.6360 removes a critical psychological barrier, increasing the likelihood of a sustained rally. Traders may look for confirmation through follow-through buying and volume analysis to assess the strength of the move. The 1.6600 level represents the next immediate target, with a successful close above it potentially opening the door to higher levels.
The implications for forex markets are clear: EURAUD is in a technical uptrend, and the breakdown of this resistance zone could attract additional buyers. Traders should monitor for any pullbacks to test the new support at 1.6360 or signs of a broader bullish continuation. Broader market factors like the EUR/USD and AUD/USD cross-rates may also influence EURAUD's trajectory in the coming weeks.
