FXstreet.com (San Francisco) – Weak China import data has weakened AUD across the board, lifting EUR/AUD to fresh session highs in the 1.2080 area.
While the pair holds 1.2096 resistance, further rallies may offer selling opportunities, with offers likely located around 1.2130 (7 Feb low), then at 1.2170 (9-day EMA). At the time of writing, EUR/AUD is quoted in the 1.2085 area vs. 1.2060 late Monday. On the 1-hour timeframe, the market has broken above ascending trendline resistance, measured from the 1.2436/1.2225 troughs.
Technical studies show the RSI is pointing higher, set to recover from oversold conditions as price threatens to push back above the 30 level (better visible on Daily timeframe chart), suggesting we may be witnessing the start of more significant bullish corrective price action in the days ahead.
