EURAUD testing summer lows


As sentiment remains positive and stock markets are rising every day, the Australian dollar is outperforming the euro, which sent the EURAUD cross back to the summer lows. On Friday, it was seen consolidating, trading at around 1.61.

The key support now stands at 1.6050, and it was breached yesterday, but bears failed to hold the cross down, and a reversal occurred. Therefore, many stop-losses were hit below the support, which might have been a bullish signal to go long. 

As long as the cross remains above 1.6050, the short-term outlook seems carefully bullish. However, if the mentioned support is taken out again, the cross could decline to 1.60, where the 2020 lows are located.

Alternatively, if the reversal signal gets confirmed, the first resistance is in the 1.6130/50 zone, where previous lows are seen. 

Another selling area might be near 1.63.

We need to say the medium and long-term trends still appear bearish, and the Aussie will most likely continue to outperform the euro as long as stocks keep rising.
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