FXstreet.com (San Francisco) - The EUR/AUD is bouncing from an earlier session low to levels back above 1.2390 after an as-expected China official PMI release (49.8) this Monday. Price has climbed back into the neutral area as it continues to trade relatively sideways around the 9-day EMA between 1.2363 and 1.2410, last at 1.2395.
The 50% and 61.8% Fibonacci retracement levels of the decline from 1.3014 to 1.1603 offer immediate support and resistance (1.2308 and 1.2473, respectively), with the 21-day EMA (1.2332) also likely to limit slides in the short-term.
EUR/AUD may be primed for a downward correction after price adopted a kind of sideways-to-bearish profile last week, in a slow retreat from recent 3-month highs. Daily RSI at 52 suggests there may be room for more upside action before a decisive turn lower. If the pairing breaks higher in October, the 21-month EMA at 1.2963 is likely to attract offers. Farther to the downside, support is noted at 1.2223 (50-day EMA).
The 50% and 61.8% Fibonacci retracement levels of the decline from 1.3014 to 1.1603 offer immediate support and resistance (1.2308 and 1.2473, respectively), with the 21-day EMA (1.2332) also likely to limit slides in the short-term.
EUR/AUD may be primed for a downward correction after price adopted a kind of sideways-to-bearish profile last week, in a slow retreat from recent 3-month highs. Daily RSI at 52 suggests there may be room for more upside action before a decisive turn lower. If the pairing breaks higher in October, the 21-month EMA at 1.2963 is likely to attract offers. Farther to the downside, support is noted at 1.2223 (50-day EMA).
