EURAUD Shows Some Promissing Signs But May Go Either Way

The currency pair continues to move inside the ascending green and descending yellow channels. It should be noted that now the price is right at the support level of 1.599, which forms the lower bound of the green channel.

In this situation, we should consider two possible scenarios for price movement. According to the first scenario, if the level of 1.599 is broken below, the bears will open a path towards the lower wall of the yellow channel and support of 1.585.

However, if we see a rebound from 1.599 and the bears do not have enough strength to pass below the specified bound, we could expect the growth of the currency pair in the direction of resistance of 1.626, which is on the upper yellow bound.

So, let’s continue to monitor the price behavior near 1.599.