EUR/AUD Price Forecast: The cross keeps the bearish vibe near 1.6250
- EUR/AUD edges lower to near 1.6250 in Wednesday’s Asian session.
- The cross maintains the negative view below the 100-period EMA, with the bearish RSI indicator.
- The initial support level is seen at 1.6183; the first upside barrier is located at 1.6293.
The EUR/AUD cross struggles to gain ground around 1.6250 on Wednesday during the early European session. The US proposed tariff increases on Chinese goods by US President-Elect Donald Trump undermine the China-proxy Australian Dollar (AUD) as Australia is one of China’s largest exporters.
According to the 4-hour chart, the bearish outlook of EUR/AUD remains intact as the cross holds below the key 100-period Exponential Moving Average (EMA). Furthermore, the downward momentum is supported by the Relative Strength Index (RSI), which stands below the midline near 46.50, suggesting that there could still be room for further downside in the near term.
The initial support level for the cross emerges near the lower limit of the Bollinger Band at 1.6183. Extended losses could see a drop to 1.6135, the low of October 18. The additional downside filter to watch is the 1.6100 psychological level.
On the upside, the upper boundary of the Bollinger Band near 1.6293 acts as an immediate resistance level for the price. The next hurdle is seen at 1.6322, the 100-day EMA. Any follow-through buying see a rally to 1.6500, round number.
EUR/AUD 4-hour chart
Euro FAQs
The Euro is the currency for the 19 European Union countries that belong to the Eurozone. It is the second most heavily traded currency in the world behind the US Dollar. In 2022, it accounted for 31% of all foreign exchange transactions, with an average daily turnover of over $2.2 trillion a day. EUR/USD is the most heavily traded currency pair in the world, accounting for an estimated 30% off all transactions, followed by EUR/JPY (4%), EUR/GBP (3%) and EUR/AUD (2%).
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