EURAUD Stuck Near Strong Resistance
07 February 2022
The Euro moved sharply higher against all the major currencies as the European Central Bank sounded surprisingly hawkish at its meeting last week.
At the time of writing, the EURAUD cross was consolidating, down 0.3% on the day but still trading near its four-month highs reached last week.
There seems to be an adamant resistance in the 1.6150 - 1.6220 area, where previous cycle highs are located. Traders took some profits in this zone following the last week's rally.
The medium-term uptrend could be confirmed if the Euro rises above that resistance, possibly targeting the August 2020 highs at 1.6420.
On the other hand, the support is expected near 1.59 (the green horizontal line), where previous highs and lows are converged.
Until the Euro breaks from the 1.6220 - 1.59 area, we could see further consolidation from the short-term perspective.