EURAUD cancels immediate bearish trend

The EURAUD cross was trading somewhat higher on Thursday and was seen near 1.6260 during the Frankfurt session as the bearish momentum seems to be waning.

The cross managed to push above the June's downtrend line, which effectively cancelled the immediate bearish trend. We might see some consolidation over the next days as the decline was a steep one, but a bullish catalyst is lacking. 

If stocks were to decline, then we could see some stronger rally here. 

The initial resistance seems to be located near 1.63 and if this level is taken out, bulls could push the cross to the 1.64 region.

Alternatively, if the euro starts to decline again, intraday supports might be located near 1.61650 and 1.61.

The EURAUD cross is still below all the important moving averages on a daily chart, thus the longer-term charts imply further downside is possible. However, on the short-term charts, there might be some oversold conditions, which could result in a corrective rally. 
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