EUR/AUD Struggles Near 1.6250 Amid Weakness in Australian Dollar; Bearish Outlook Remains
The EUR/AUD pair is experiencing challenges near 1.6250 in early Wednesday’s European session, weighed down by market concerns over potential U.S. tariff hikes on Chinese goods. These tariff proposals, spearheaded by U.S. President-Elect Donald Trump, are causing ripples in the Australian Dollar (AUD), which is sensitive to developments in China, one of Australia’s largest trading partners.
EUR/AUD Technical Analysis: Bearish Momentum Holds Firm
In technical analysis, the bearish trend for EUR/AUD remains strong, as the cross trades below the critical 100-period Exponential Moving Average (EMA) on the 4-hour chart. Additionally, the Relative Strength Index (RSI) is below the midline at 46.50, reinforcing the potential for continued downside momentum.
Key Support Levels:
- 1.6183: The lower Bollinger Band marks the first support level.
- 1.6135: October 18 low, providing an additional support layer.
- 1.6100: A psychological support level that could signal further selling if breached.
Immediate Resistance Levels:
- 1.6293: The upper boundary of the Bollinger Band, acting as immediate resistance.
- 1.6322: The 100-day EMA, posing the next challenge for buyers.
- 1.6500: A round-number resistance level, indicating a potential rally if buyers gain momentum.
With EUR/AUD facing selling pressure below key technical indicators, traders may keep a close watch on these support and resistance levels to anticipate potential market movements.
