NAB discusses EUR/AUD technical outlook and flags a scope for a pause in the recent uptrend, with a potential correction likely to emerge over coming weeks.
“The past two weeks have seen price declines fail to hold the full extent of their intra-week declines into the weekly close. This confirms that the pause in this MT uptrend is yet to establish a sustainable downward path,” NAB notes.
“In mid-May price broke below one-year trend support around 1.5750 and declined to the 50-week MA. This broken trend line and the 50-week MA remain important levels of MT resistance / support at 1.6500/25 and 1.5760/90.
An impulsive downward correction is yet to emerge. The past two weeks have produced incremental declines with mid-range closes indicating a modest correction,” NAB adds.