The EURAUD has moved to the highest level since July 17th (high reached 1.1950 vs a high on July 18th of 1.1938). Although the bias remains to the upside (bullish), the momentum higher is slowing a bit. This warrants increased attention to the risk below.
Specifically, that slowdown, has allowed the 100 and 200 bar MA on the 5 minute chart to catch up with the price. Those MA come in at 1.1931 and 1.1926 respectively. Trend line support comes in at 1.1922. This is close support intraday. Look for traders to lean against the level on dips. A move below, however, should target a correction back down toward the lows for the day and the 38.2% of the move up from yesterday’s low at the 1.18837 level. So be aware.
On the topside, the 1.1987 to 1.1993 level is the next target (low from July 10, high area from July 16). The 38.2% of the trend move down from the May 2012 high comes in at 1.21454. This would be a key target for the pair should momentum higher continue.
