EUR/AUD Price Analysis: RSI hidden bullish divergence, bulls seek upside continuation
|- EUR/AUD bulls are in the driving seat in a continuation medium-term prospect.
- 4-hour divergence is compelling for a break of near-term resistance in coming sessions.
The price of EUR/AUD is sending bullish smoke signals from afar given that the longer-term outlook is one of recovery, while the nearer-term developments are hidden bullish divergence.
The following illustrates the bullish bias in a top-down analysis which could potentially be something for traders to act upon.
Weekly chart
From a weekly perspective, the price is in a bullish trend following a healthy 50% mean reversion and en-route for a test of the weekly October 2020 supply area.
Daily chart
From a daily perspective, the price has met support and is seeking to correct the correction of the prior daily bullish impulse.
4-hour chart
From a 4-hour basis, the price is displaying hidden bullish divergence from the RSI.
The bulls have also broken the old resistance structure, near the 21-EMA.
This would now be expected to act as support aligned with the between the 1.6225 and 1.6205 zones should the resistance hold bulls off on first attempts.
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